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COMPUTALOG LTD. ANNOUNCES PROPOSED PRIVATE PLACEMENT AND RIGHTS ISSUE

COMPUTALOG LTD. ANNOUNCES PROPOSED PRIVATE PLACEMENT AND RIGHTS ISSUE
 CALGARY, Alberta, June 25 /PRNewswire/ -- Computalog Ltd. (Toronto: CGH) announced that it has executed a letter of intent in respect of issuance to a partnership to be formed by investor clients of SCF Partners LP, 16,363,636 common shares at a price of Cdn $0.55 a share for gross proceeds to Computalog of Cdn $9 million. In connection with such purchase of shares, the partnership will also be issued warrants for no additional consideration, entitling the holder to purchase an additional 16,363,636 common shares at a price of Cdn $0.75 per share. The warrants will expire on Sept. 30, 1995, subject to certain circumstance which may result in an earlier expiry date.
 SCF manages funds for a group of sophisticated institutional investors who specialize in investments in the oil and gas service industry, both in North America and internationally. Their portfolio of investments includes both public and private companies in various sectors of the oil and gas service industry, and Computalog expects to benefit from potential synergies with these other investments. SCF is associated with an investment banking firm specializing in the oil and gas service industry. Computalog anticipates that this proposed strategic alliance with SCF will be beneficial to Computalog's business and market development prospects.
 Computalog also intends, subject to regulatory approval, to proceed with a rights offering to its shareholders of up to 5,454,545 common shares at Cdn $0.55 per share, for total proceeds of Cdn. $3 million, with warrants attached on the same terms as those acquired by the partnership. The terms of the rights offering will provide that existing shareholders who exercise all of the rights granted to them, will have the privilege of subscribing for and exercising, on a pro-rata basis, all rights which are not exercised by other shareholders. The partnership will be entitled to exercise any remaining rights which are not so exercised.
 Assuming the issue of shares to the partnership and the exercise of all the rights by other shareholders, Computalog will have 48,751,045 shares outstanding of which the partnership will own 34 percent.
 In compensation for costs incurred by SCF and in the event SCF is prepared to fund the private placement, but it is not completed as a result of circumstances outside the control of SCF, Computalog has agreed to grant SCF an option to purchase 1,000,000 common shares at a price of Cdn $0.55 per share, exercisable prior to Dec. 31, 1992.
 The transactions are subject to all requisite regulatory and shareholder approvals, receipt by SCF of investor approvals, and completion of necessary documentation and is anticipated to close by mid October 1992.
 Midland Walwyn Capital Inc. is acting as adviser to Computalog, in connection with the above transactions.
 Proceeds of the issue will be used for business development, principally overseas, and general corporate purposes.
 Computalog Ltd. provides wireline logging services and designs and manufactures wireline products for the North American and international oil and gas markets.
 -0- 6/25/92
 /CONTACT: Glynn G. Davies, COO of Computalog, 403-265-6060; or Laurence E. Simmons, president of SCF Partners LP, 713-223-7888/
 (CGH.) CO: Computalog Ltd.; SCF Partners LP ST: Alberta IN: OIL SU: KJ -- LA009 -- 3745 06/25/92 11:51 EDT
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Publication:PR Newswire
Date:Jun 25, 1992
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