THE PHOENIX RESOURCE COMPANIES MAKES ANNOUNCEMENT
THE PHOENIX RESOURCE COMPANIES MAKES ANNOUNCEMENT OKLAHOMA CITY, Nov. 4 /PRNewswire/ -- The Phoenix Resource
Companies, Inc. (NASDAQ: PHNI, PSE: PHN) announced today that Phoenix and Samsung Company Limited will enter binding arbitration concerning a $4 million supplemental payment due to be paid by Samsung to Phoenix this month. Such payment is due in accord with the final results of an independent third-party reserve evaluation performed pursuant to the terms of a 1989 property sales contract.
Under the 1989 sales contract, Phoenix sold Samsung a portion of its interest in the Khalda Concession in Egypt for an initial purchase price, plus potential supplemental payments contingent upon five annual, independent year-end reserve evaluations. Samsung has stated that it believes the most recent third-party reserve evaluation was performed incorrectly. Phoenix disagrees. The sales contract requires all disputes between Samsung and Phoenix to be resolved by binding arbitration. Phoenix is an independent oil and gas company with its principal assets located in the Arab Republic of Egypt. -0- 11/4/91 /CONTACT: Debora L. Bingham of Phoenix Resource Companies, 405-728-5100/ (PHNI) CO: Phoenix Resource Companies, Inc. ST: Oklahoma IN: OIL SU: SM -- NY079 -- 0888 11/04/91 16:21 EST
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|Date:||Nov 4, 1991|
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