TRI TEXAS ANNOUNCES FINANCING OF CASH TENDER OFFER OF THE HOME-STAKE COMPANIES
TRI TEXAS ANNOUNCES FINANCING OF CASH TENDER
OFFER OF THE HOME-STAKE COMPANIES
DALLAS, Dec. 5 /PRNewswire/ -- Tri Texas, Inc., (NASDAQ Bulletin Board: TTEX) today announced that it has entered into a financing arrangement with Summit Partners Management Co., a Dallas based oil and gas investment company. The financing arrangement contemplates funding Tri Texas' cash tender offer for the Home-Stake Oil & Gas Company (HSOG) and the Home-Stake Royalty Corporation (HSRC). The arrangement between Tri Texas and Summit anticipates the formation of a new entity which will ultimately acquire the stock of the Home-Stake Companies. Such financing is subject to compliance with certain conditions customary to oil and gas financing transactions.
As previously announced, on Nov. 22, 1991, Tri Texas initiated cash tender offers to purchase the common stock of HSOG for $161.00 per share and the common stock of HSRC for $248.00 per share. The expiration date of such tender offer is Dec. 11, 1991, unless extended by Tri Texas. Tri Texas currently owns approximately 24 percent of HSOG and approximately 18 percent of HSRC and has options to acquire additional shares of both entities.
The Home-Stake Companies are independent oil and gas concerns engaged in the exploration, production, development and acquisition of oil and gas properties. The Home-Stake Companies were formed in the early 1920s and are
headquartered in Tulsa, Okla. At Dec. 31, 1990, the Home-Stake Companies owned interests in approximately 390 producing working interest properties and over 1,000 producing royalty interest properties. These properties are located in approximately 16 states and have estimated recoverable proved producing developed reserves of approximately 2,650,000 barrels of oil (including the April, 1991 acquisition of certain Montana properties) and 21,690,000 Mcf of gas.
The financing arrangement also contemplates funding to exercise the options which Tri Texas now holds to purchase approximately 22 percent of HSOG and 20 percent of HSRC. The Home-Stake Companies dispute Tri Texas' right to purchase approximately 50 percent of these option shares.
Tri Texas continues to be involved in the quick lube oil change business operating or managing six Texaco Express Lube facilities in the Dallas/Fort Worth area.
/CONTACT: Delbert T. Howell, president of Tri Texas, 214-931-7694/
(TTEX) CO: Tri Texas, Inc. ST: Texas IN: REA SU: FNC SM -- NY100 -- 9888 12/05/91 17:38 EST