Mesquite Resources Inc. Closes Acquisition of Oil and Gas Assets.CALGARY, Alberta--(BUSINESS WIRE)--Dec. 10, 1997--Mesquite Resources Inc. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :MQT MQT Materialized Query Table (SQL queries) MQT Macroscopic Quantum Tunneling MQT Mission Qualification Training MQT Medical Qigong Therapist MQT Marquette Rail (Michigan rail company) .) Mesquite Resources Inc. ("Mesquite") announced today that it has completed the purchase of certain oil and gas assets from a private oil and gas corporation for a purchase price of $1,700,000. The assets include 98 BOEPD BOEPD Barrels of Oil Equivalent Per Day and 12,500 net acres of undeveloped lands. The reserves in respect of producing properties were independently evaluated at 152,600 BOE BOE Based on Experience BOE Board of Education BOE BoletÃn Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip on a proved plus one-half probable basis. The purchase price was funded with cash of $1,400,000, which was raised through a combination of cash on hand, bank financing and third party financing from Macon Resources Inc. ("Macon"), and the issuance of 1,000,000 common shares from treasury. This acquisition is expected to increase Mesquite's daily production to 263 BOEPD. In connection with the acquisition, Mesquite has entered into a financing arrangement and joint venture agreement with Macon. Pursuant to the terms of an Investment Offer, Macon has agreed to loan Mesquite up to a maximum of $1,200,000 by way of a convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. , bearing interest at 8 percent per annum Per annum Yearly. for five years with a conversion price of $0.35 per share for years one and two and escalating thereafter as required by The Alberta Stock Exchange. The debenture, is convertible at any time at the option of Macon. The debenture is redeemable at the option of Mesquite on 30 day's prior notice in the event that the 20 day weighted average trading price Trading price The price at which a security is currently selling. of the common shares of Mesquite exceeds the conversion price by 20 percent or more. In addition, Macon is entitled to receive one share purchase warrant at a price of $0.40 per share for each three common shares acquired upon conversion of the debenture. The issuance of the convertible debenture by Mesquite is conditional upon the approval of The Alberta Stock Exchange. Mesquite is also continuing its private placement of up to 1,900,000 Special Warrants. Each Special Warrant entitles the holder to acquire two flow-through common shares and one common share purchase warrant for a purchase price of $0.65 per Special Warrant. Canaccord Capital Corporation is acting as agent in respect of this private placement. Mesquite is a Canadian junior oil and gas corporation based in Calgary, Alberta and is listed on The Alberta Stock Exchange under the symbol "MQT". -0- Note to Editors: The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein. CONTACT: Mesquite Resources Inc. Scott St. John Scott St. John (born on December 4, 1969 in London, Ontario, Canada) is a Canadian violinist and violist. He is a member of the St. Lawrence String Quartet and on faculty at Stanford University, where he teaches violin and chamber music. Biography St. , 403/269-8924 403/269-8947 (FAX) or Mesquite Resources Inc. Steve Takacs, 403/269-8924 403/269-8947 (FAX) |
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