TIDE WEST OIL SIGNS LETTER OF INTENT TO MERGE WITH DRACO GAS PARTNERS, L.P.
TIDE WEST OIL SIGNS LETTER OF INTENT TO MERGE WITH DRACO GAS PARTNERS, L.P. HOLDENVILLE, Okla., May 21 /PRNewswire/ -- Tide West Oil Company (NASDAQ: TIDE) today announced that it has signed a letter of intent to merge with Draco Gas Partners, L.P. of Tulsa, Okla. Consummation of the merger is conditioned upon the execution of a definitive merger agreement and approval of required parties. After the consummation of the merger, the current equity holders of Draco will own 80 percent of the total outstanding shares of Tide West common stock. Tide West currently has 12,904,871 shares of common stock issued and outstanding. At the end of their respective fiscal years, the combined companies had estimated proved reserves in excess of 10 million barrels of oil equivalent, consisting of 25 percent oil and 75 percent gas, having an estimated present value of $60 million based on SEC parameters. After the merger, senior executive positions in Tide West are expected to be held by Douglas J. Flint, currently President of Tide West, and Philip B. Smith and Robert H. Mase, currently president and vice president, respectively, of the general partner of Draco. Tide West Oil Company has engaged primarily in exploration and development drilling in the Austin Chalk Trend in South Texas, the Anadarko Basin in western Oklahoma, and the Arkoma Basin in southeastern Oklahoma. Draco has been engaged in the acquisition and development of oil and gas properties throughout the Mid-Continent region of the U.S. The equity of Draco is owned approximately 12 percent by management and 88 percent by Natural Gas Partners, L.P. (NGP), a $200 million partnership organized by financier Richard Rainwater of Texas and managed by R. Gamble Baldwin. Representatives of Natural Gas Partners are expected to become directors of Tide West following the merger. According to Flint, "The merger is expected to result in a combined company with a substantially increased reserve base and additional financial strength and flexibility. Management of Tide West is looking forward to working with Draco and Natural Gas Partners to pursue opportunities in oil and gas." -0- 5/21/92 /CONTACT: Douglas J. Flint, president of Tide West Oil, 405-379-5417; Philip B. Smith, president of Draco Gas Partners, 918-250-7666; and Larry Howell of Howell Communications, 214-340-9994, for Tide West Oil/ (TIDE) CO: Tide West Oil Company; Draco Gas Partners, L.P. ST: Oklahoma IN: OIL SU: TNM
SH -- NY016 -- 2670 05/21/92 09:13 EDT
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|Date:||May 21, 1992|
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