MERGERS-ACQUISITIONS / Danoil Acquires Coachlight & Updates Recent
Activity
TSE, ASE SYMBOL: DAN.A
JULY 2, 1998
CALGARY, ALBERTA--DANOIL ENERGY LTD. ("Danoil") (DAN.A:TSE/ASE)
and Coachlight Resources Ltd. ("Coachlight") (COO:ASE) are pleased
to announce that, effective June 30, 1998, Danoil acquired all of
the issued and outstanding Coachlight common shares on the basis
of $0.15 in cash and 0.375 of a Danoil common share for each
Coachlight Common Share.
The transaction was approved by Coachlight shareholders at
Coachlight's annual and special meeting held on June 30, 1998 and
received all required regulatory approvals. In connection with
the transaction, Coachlight has become a wholly-owned subsidiary
of Danoil.
Recent activity has been positive. Danoil has drilled and cased
two wells (60 percent and 35 percent interests) in its core area
at Judy/Carson Creek. To date only one well has been completed,
with gas flowing at rates exceeding 1.5 million cubic feet per
day. The second well will be completed in July. As well, Danoil
acquired varying interests (18-20 percent working interest) in six
wells and increased its working interest in the Carson Creek gas
plant. At Chigwell, the Company has drilled and cased one well (70
percent interest) and at west Drumheller, a recent recompletion
(50 percent interest) is flowing 140 barrels of oil per day and
500 mcf/d of natural gas.
DANOIL ENERGY LTD. is a Calgary based oil and gas company engaged
in the exploration, development and acquisition of both oil and
natural gas reserves in Western Canada.
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