FINANCING / Carpatsky Petroleum - Agreement Reached for US $1 Million
Private Placement; Negotiations for Exchange of US $2.2
Million of Debt for Common Stock
ASE SYMBOL: KPY
JANUARY 22, 1999
CALGARY, ALBERTA and HOUSTON, TEXAS--Carpatsky Petroleum Inc.
announced today that it has agreed with Eurosecurities Ltd., a
Bermuda-based investment company, to the terms of a US $1 million
private placement. (All amounts are stated in US dollars.) Under
the agreement, the Company will issue ten units, each unit
comprised of 1,333,334 shares of Common Stock at $0.075 per share
and a warrant to purchase 500,000 shares of Common Stock at $0.20
per share on or before December 31, 2000. Initial funding has
been received by the Company with additional funds to be received
by January 29, 1999. A closing date of February 26, 1999 has been
set for completion of the placement.
Completion is subject to, among other conditions, the exchange of
$2.2 million of corporate debt and accrued interest for Common
Stock, and ASE and other regulatory approvals. Discussions have
been commenced with holders of the debt and, while a specific
conversion rate has yet to be established, the Company is
confident that this matter will be resolved in a manner mutually
beneficial to both debt and equity holders.
The initial funds received have been applied to well completions
in the Rudovsko-Chervonozavodskoye (RC Field) in the Poltava
region. The RC Field is the largest discovered, but only
partially developed gas/condensate field in the Ukraine. The
Company is currently engaged in the completion and drilling of
five wells in this field. One well has been completed and is on
production. The Company expects to issue a review of the results
of recent operations in the RC Field and the status of its gas
marketing activities in Ukraine and Europe in the near future. |
