GOLDEN TRIANGLE FORGES AHEAD; MERGER NEGOTIATIONS DEVELOPING INTO MAJOR ACQUISITION
GOLDEN TRIANGLE FORGES AHEAD;
MERGER NEGOTIATIONS DEVELOPING INTO MAJOR ACQUISITION
CISCO, Texas, Nov. 6 /PRNewswire/ -- Golden Triangle Royalty & Oil, Inc. (NASDAQ: GTRO) management today reported that a letter of intent has been signed to acquire $1,123,966 of net assets (100 percent) and the shares of Houston Oil & Energy, Inc. (HOE), a full reporting, publicly held company. HOE's asset portfolio includes the following as of August 1991:
-- Overriding Royalty Interests (ORRI) in Australia under 32,531,000
gross surface acres of oil and gas concessions ranging from
2.01752 percent to .0246504 percent of gross production;
-- A 7.5 percent working interest in the 1,416,800 acre oil and gas
concession, ATP 460P, in Australia, on which a major structure
with over 1,000 feet of structural closure has been reported by
the seismologist who is currently processing the seismic records;
-- Producing ORRI, royalties, and mineral interests under 54 leases
in Texas and Kansas;
-- 15.5 percent of the issued shares of Hailey Energy Corporation
(HECC). HECC recently discovered a new gas field in Oklahoma,
and is involved in drilling and exploration of 9,751,600 acres of
oil and gas concessions in Australia; and
-- HOE has applied for three new areas in the Surat/Bowen oil and
gas producing basin in Queensland, Australia.
HOE has a market value of $2,823,599.84 at halfway between the bid and asked price of the stock on Oct. 31, 1991. The proposed ratio for the stock acquisition is one share of GTRO stock given for 3.125 shares of HOE stock received. The ratio is based on the market value of both companies' stock on Aug. 14, 1991.
Drilling activity is accelerating on concessions in Australia where both GTRO and HOE have overriding royalty interests from which they are currently receiving regular royalty payments. If the stockholders of both companies approve the acquisition, their activities will dovetail beneficially, and both companies should profit by a considerable reduction in operating expenses.
/CONTACT: Lloyd London or Robert Kamon of Golden Triangle, 817-442-2665/
(GTRO) CO: Golden Triangle Royalty & Oil Inc.; Houston Oil & Energy, Inc. ST: Texas IN: OIL SU: TNM JT-TS -- NY047 -- 1729 11/06/91 12:47 EST