ACQUISITIONS - MERGERS / Tappit Resources Announcement Correction
In the news release transmitted earlier today, April 23, 1998,
for Tappit Resources Ltd., there was a line omitted from the 7th
paragraph. The corrected release is as follows:
REGINA, SASKATCHEWAN--Tappit Resources Ltd. ("Tappit") today
announced that it intends to make an offer to purchase all of the
issued and outstanding common shares of Goal Energy Inc. of
Calgary ("Goal"), including any common shares issuable upon the
exercise of outstanding options. Tappit is offering as
consideration for each common share of Goal, at the election of
the shareholders of Goal, either: (i) $0.07 in cash and 0.75 of a
common share of Tappit; or (ii) one common share of Tappit.
Tappit will finance the cash portion of the transaction with
additional term debt currently available through its banker.
Based on the trading price of Tappit common shares on The Alberta
Stock Exchange on April 22, 1998 of $0.35, the Offer represents
between a 75 percent and 84 percent premium over Goal's closing
price of $0.19 on the same date.
Tappit will request today from Goal a copy of its shareholder's
list and expects to mail its formal offer and take-over bid
circular to Goal shareholders by mid May, 1998. The offer period
will last 21 days and will be subject to typical conditions
including a minimum of 66 2/3 percent of the common shares of Goal
being tendered into the offer and the receipt of all necessary
regulatory approvals.
Goal Energy Inc. has current production of 500 barrels of oil
equivalent (boepd) per day comprised 85 percent of gas production
primarily in Alberta, and 15 percent oil production mostly in S.E.
Saskatchewan. Average sales price for their gas is currently
$2.20 per thousand cubic feet.
Tappit Resources Ltd. is a Regina based oil and gas company
currently producing 600 barrels of oil per day comprised almost
entirely of oil production from 74 company operated wells in
southeast Saskatchewan.
Tappit's post acquisition production will be 1100 boepd. In May
1998, following spring breakup, as wells currently being completed
at Tappit's Red River deep play in southeast Saskatchewan are
brought on production and Goal's shut-in gas is brought on stream,
Tappit expects that production will increase. The combined
companies production will be comprised of 46 percent gas, 54
percent oil.
The acquisition of Goal will position Tappit with the upside that
comes with exposure to gas production and allow Tappit to pursue
further light oil opportunities in our core area of southeast
Saskatchewan. |
