More details of the deal:
OILEX Acquires a 40% Stake in IMPN from its Majority Shareholder
HOUSTON, July 1 /PRNewswire/ -- OILEX, INC. (Nasdaq:OLEX) announced today that it has acquired 2,680,000 shares of the common stock in FUNSCAPE, CORP. (IMPN) which equates to a 40% equity position (including voting rights) from its majority shareholder in a private transaction. OLEX paid $3.50 per share or $9,380,000, by way of a two year promissory note with $1,600,000 in cash, bearing interest at a rate of 6% and the remaining balance of the purchase price in OLEX common stock to be issued in two years at the market price on June 30, 1999. IMPN currently has 6.3 million shares of issued and outstanding common stock with approximately 750,000 shares in its public float. The agreement also called for OLEX to grant to the majority shareholder of IMPN an option to purchase warrants of OLEX stock of up to 500,000 shares at $1.50 per share and up to an additional 500,000 shares at $2.50 per share for a period of three years.
OLEX will have two seats on the Board of Directors of IMPN immediately that will include Oliver H. Timmins, III, President of OLEX and Richard G. Clark an active board member of OLEX.
IMPN currently owns, manufactures and sells portable swabbing units. In addition, in recent announcements IMPN has acquired 12,904,618 acres of oil and gas leases in the EROMANGA BASIN in Queensland, Australia under concession ATP 615. The most pronounced geological structure on the lease is the BURKE RIVER GRABEN which is 60 miles long. The best example of an analogous geological graben is the PERSIAN GULF BASIN with its accompanying anticlines on the hingline sides of the Persian Gulf forming the world's largest oil fields. There is currently a 450 mile pipeline being built across the entire ATP-615 concession to transport fluids.
IMPN also recently announced the acquisition of 650 wells with 84.5 million barrels of in-place oil in the Corsicana Field, Texas. Estimated recoverable reserves from this field based on a very conservative recovery factor of 16% prepared by 3 different engineering firms equates to 22.2 million barrels of oil. The field is located 50 miles south of Dallas, Texas. IMPN will utilize its portable swabbing units as well as its new QUARTERNARY oil recovery method. The QUARTERNARY technology combines proven and widely utilized engineering disciplines from mining, construction, heavy civil and petroleum arenas to provide an economical and efficient method for recovery up to 60% of the original in-place reserves from shallow wells.
OLEX consulted with its financial advisory firm NATIONAL SECURITIES CORP. with respect to the overall structure and the potential effect in the equities market of both companies prior to consummating the transaction.
OLEX President, Oliver H. Timmins, III, stated, ``The acquisition of 40% of the issued and outstanding common stock of IMPN with voting rights as well as two seats on the board of IMPN further enhances appropriate control mechanisms for delivery of portable swabbing units that OLEX field operations require. Additionally, OLEX will participate in the development and application of the QUARTERNARY oil recovery technology as well as participate in the development of the EROMANGA BASIN.''
OLEX is in the business of acquiring and developing low risk oil and gas properties.
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SOURCE: OILEX, INC.
Contact: David Howar of Howard Bronson & Co. for OILEX, INC., 212-867-6160 |
