GARNET ANNOUNCES COMPLETION OF CORPORATE ACQUISITION AND DRILLING STATUS IN COLOMBIA
GARNET ANNOUNCES COMPLETION OF CORPORATE ACQUISITION
AND DRILLING STATUS IN COLOMBIA
HOUSTON, Dec. 6 /PRNewswire/ -- Garnet Resources Corporation (NASDAQ: GARN) announced today that it has completed mergers of RGO Energy Inc. and RGO Partners, Ltd. with wholly owned subsidiaries of Garnet.
Garnet stated that the mergers were approved by its shareholders and by shareholders and partners of the RGO entities, and that it will issue to the RGO shareholders and partners 2,542,563 shares of its common stock. Based on the approximate market price of Garnet common stock at the time of the negotiations between the parties regarding the mergers, the value of the transactions is approximately $18,000,000. Approximately 60 percent of the assets of the RGO entities is comprised of cash and short-term investments, with the balance being interests in producing and undeveloped oil and gas properties in the United States which Garnet intends to sell.
The company also reported that it has commenced pump tests of its Miraflor No. 1 oil discovery in the Putumayo region of Colombia. Results of the pump tests, which will determine the optimum producing capacity of the well, are expected to be finalized within the next 10 days. Garnet also stated that the Florida No. 1, an exploration well about six miles southeast of the Miraflor No. 1, is presently drilling at 2,400 feet towards a projected total depth of 9,500 feet.
Garnet is engaged primarily in international oil and gas exploration activities. Its exploration and production operations in Colombia are conducted through its subsidiary Argosy Energy International.
/CONTACT: Albert E. Whitehead, chairman, 918-587-8093, or George M. Nevers, president, 713-759-1692, both of Garnet Resources/
(GARN) CO: Garnet Resources Corporation; RGO Energy Inc.; RGO Partners ST: Texas IN: OIL SU: TNM FC-SM -- NY064 -- 0258 12/06/91 16:57 EST