Northstar Exchanges Morrison Middlefield Shares For Oil Production.CALGARY, Alberta--(BUSINESS WIRE)--May 12, 1998--Northstar Energy Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NEN Nen, river, China Nen (nŭn) or Nonni (nôn`nē), river, 740 mi (1,191 km) long, rising in the Yilehuli (Ilkuri) Mts., N Heilongjiang prov. )(ME:NEN)(Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :NEN) today announced that it has agreed with Morrison Middlefield Resources Limited to exchange the shares and options of MMRL MMRL Multimedia Medical Reference Library held by Northstar for MMRL's 50 percent interest in Mountain Energy Inc. which owns certain of MMRL's Canadian oil and gas properties. The properties being acquired by Northstar from MMRL are located primarily in the Halkirk area of central Alberta Central Alberta (also named Alberta's Heartland) is a region located in the Canadian province of Alberta. Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. and represent approximately 2,100 barrels of oil equivalent per day of current production, the majority of which is low operating cost, light oil. John Hagg, chief executive officer, stated that "through the transaction, we are acquiring the remaining 50 percent interest in existing Northstar-operated properties, thereby furthering our strategy of increasing working interests in our core areas. In addition, Northstar will cease to manage the operations of MMRL, consistent with Northstar's objective of focussing its efforts on its own oil and gas exploration, development and production activities." Northstar owns approximately 4.2 million common shares of MMRL and options, exercisable at $5.00 per share, to acquire an additional 1.2 million common shares. In commenting on the exchange transaction, John Richels, chief financial officer noted that "in our 1998 budget, we anticipated the sale of our holdings in MMRL and the reinvestment of the proceeds into oil and gas properties. Through this transaction, we have accomplished both objectives in one step." John Richels went on to say that "otherwise, our 1998 budget remains unchanged and, with our ongoing non-core property disposition and capital expenditure programs, we anticipate our long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. will be approximately $350 million by year end." The transaction is subject to certain approvals and conditions, including the approval of the Toronto and Montreal stock exchanges Montreal Stock Exchange See Bourse de Montreal, Inc. (Canadian Derivatives Exchange) and other securities regulatory authorities and is expected to close on July 31, 1998, with a June 30, 1998 effective date. Northstar Energy Corporation is a Canadian company engaged in petroleum and natural gas exploration and production. The company's common shares are listed on the Toronto, Montreal and Alberta stock exchanges under the trading symbol Trading symbol See: Ticker symbol NEN. CONTACT: Northstar Energy Corporation John A. Hagg, 403/213-8000 403/213-8100 (FAX) or Northstar Energy Corporation John Richels, 403/213-8000 |
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