Southwestern Gold: Strategic Investment in Maxy Oil & Gas Inc.VANCOUVER, British Columbia--(BUSINESS WIRE)--July 6, 1999-- Southwestern Gold Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SWG SWG abbr. standard wire gauge .)announces that it has acquired by way of private placement 3.2 million units of Maxy Oil & Gas Inc. (VSE See DOS/VSE. VSE - Virtual Storage Extended :MXY.) at a price of $0.90 per unit for a total purchase price of $2,880,000. Each unit consists of 2.387 common shares, resulting in the acquisition by Southwestern Gold of 7,638,400 shares of Maxy Oil & Gas Inc., representing 26 percent of its outstanding shares. On November 1, 1999 3,200,000 shares will become free trading and the remaining 4,438,400 shares will be released from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. upon receipt of regulatory approval. Maxy Oil & Gas Inc. is an oil and natural gas exploration company incorporated under the laws of the Province of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . Currently, the Company's principal business focus is on natural gas exploration in the Sichuan Basin The Sichuan Basin (Chinese: 四川盆地) is a basin in southwestern China. It comprises the central and eastern parts of Sichuan province, as well as Chongqing Municipality. of China. The Sichuan Basin is the most prolific natural gas producing basin in China. The province has an extensive natural gas pipeline infrastructure in place and supports a robust and growing gas market. Gas pricing is strong and stable, averaging about US$ 2.00 per MCF (million cubic feet). In December 1998, Maxy entered into a Joint Venture with Texaco China B.V. to explore the 14,000 square kilometre Square kilometre (U.S. spelling: square kilometer), symbol km², is a decimal multiple of the SI unit of surface area, the square metre, one of the SI derived units. 1 km² is equal to:
The first exploratory well on the Yaan Block, the Sanhenan No. 1, was recently drilled to a depth of 3,132 metres and is in the process of being tested. Well logs have indicated potential pay in several zones. The Sanhenan structure is 20 kilometres southwest and on-trend with the producing Pinglouba Field that has proven gas reserves estimated at 1 TCF See Trenton Computer Festival. (trillion cubic feet). Evaluation of the Sanhenan No. 1 well should be complete by mid-July. Maxy has also acquired the exploration rights to the 5,500 square kilometre Longmenshan Block, adjacent to the Yaan Block, through an agreement with China National Star Petroleum Corporation. Maxy expects to have government approval to begin exploration of that area by the end of the year. Southwestern Gold characterizes the acquisition of shares in Maxy Oil & Gas Inc. as an excellent investment that diversifies its portfolio. John Paterson John Paterson may refer to:
Southwestern Gold Corporation presently has over 22 joint ventures with companies including Newmont, PanAmerican Silver, Teck, Pasminco, Paramount Ventures, Southern Peru Copper, Minorco, Cambior and Cedimin. The Company is exploring for diamonds in Brazil and Canada through its 54.7 percent owned subsidiary, Canabrava Diamond Corporation, in partnership with Kennecott/Paramount and SouthernEra. |
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