Printer Friendly

UNITED COMPASS RESOURCES ANNOUNCES SIGNING OF PURCHASE AGREEMENT

 BLAINE, Wash., Oct. 4 /PRNewswire/ -- United Compass Resources Ltd. announced the signing of a purchase agreement with Charles W. Forster and CWF Holdings Inc. to purchase all of the vendors shares in Foralta Resources Ltd. and Legal Oil and Gas Ltd. representing a 100 percent interest in both companies.
 The Foralta and Legal companies own a 100-percent working interest in 21 producing oil and gas wells and three equipped salt water disposal wells in the Central Alberta area of Canada. The $2,000,000 purchase price of the properties is based on an Engineering Evaluation Report dated Sept. 7, 1993, prepared by Farries Engineering (1977) Ltd. of Calgary, Alberta, Canada.
 Payment of the $2,000,000 (CDN$) purchase price will be $1,500,000 in cash and 500,000 preferred shares on or before Feb. 28, 1994. The preferred shares are convertible into common shares at $1.00 per share until March 1, 1995, then escalate yearly at 25 cents per share after March 1, 1995. Interest at the rate of 8.5 percent per annum is payable on the outstanding preferred shares.
 The company has agreed to issue common shares at $1.00 per share to purchase any required excess equipment and other interests owned by the companies and not included in the Farries Engineering report.
 A refundable deposit of $125,000 has been made to the vendors to be used for remedial work which will enhance production from the existing wells.
 Current cash flows are in excess of $600,000 (CDN$) net per annum from the existing facilities. The company plans to workover some of the wells and drill four infill development wells to substantially increase cash flows from the properties.
 -0- 10/4/93
 /CONTACT: Louis P. Lees, president, 206-332-4600/
 (UCR.)


CO: United Compass Resources Ltd. ST: Washington IN: OIL SU: TNM

JB-JL -- LA042 -- 8605 10/04/93 18:35 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 4, 1993
Words:314
Previous Article:SAZTEC INTERNATIONAL INC. ANNOUNCES FISCAL YEAR RESULTS
Next Article:AETRIUM NAMES CLEMENS VP OF ENGINEERING
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters