FINANCING / Lexxor Generates $1.1 Million Via Private Placement and Joint
Venture Agreement
CALGARY, Jan. 6 /CNW/ - LEXXOR ENERGY INC. has raised a total of $1.1
million through a private placement of flow through shares in late December
and finalization, in early January, 1999, of a joint venture arrangement
involving a northern Alberta gas project. The private placement, which closed
on December 30, 1998, saw the Company issue 3,000,000 Class A ''flow through''
shares at $0.20 per share for proceeds of $600,000. Subscribers also received
3,000,000 Class A share purchase warrants, with the holder entitled to acquire
one Class A share for $0.30 and three warrants. The warrants, which expire
June 15, 2000, would lead to the issuance of 1,000,000 additional Class A
shares if fully exercised. Following the closing of the private placement
Lexxor has approximately 11.76 million Class A shares issued and outstanding.
In early January, 1999 Lexxor finalized a joint venture arrangement on a
northern Alberta gas property involving a $500,000 payment to Lexxor by an
incoming industry partner in return for a 50 percent interest in one producing
gaswell, (averaging 500 mcf/d) one cased potential gaswell and the structuring
of an Area of Mutual Interest encompassing exploration prospects in a five
township area. Lexxor also receives preferred access to the partner's gas
processing facilities and significantly reduced transportation and gathering
fees for its working interest reserves and production within the Area of
Mutual Interest.
Lexxor intends to utilize proceeds from these two transactions in its
active winter drilling program. At least four wells (average 54 percent
working interest) are planned in the northern gas project area at Haro and
South Haro, while seismic programs are slated for gas prospects at Monitor in
eastern Alberta, Bison Lake, in northern Alberta and Little Bow in southern
Alberta.
Lexxor Energy Inc. is a Calgary-based oil and gas exploration company
which trades on The Alberta Stock Exchange, symbol LXX.A.
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