John/Neutrino Resources
Didn't forget you. I've been searching all over the web to find that
article I told you about. Unsuccessful! Nothing is ever easy. I wish
I had a scanner to copy and send via e-mail. Oh well, here goes.
MONEY/HOT STOCKS
David Black-For The Financial Post
Date: August 23, 1996
In its short history, Neutrino Resources Inc. has grown from virtually
nothing into a Toronto Stock Exchange-listed junior oil & gas
company with oil equivalent production of 2,000 bbl's/d, and
reserves of 6.4 million barrels at a cost of only $3.90 per barrel.
The company was started in August 1993 as a private concern,
capitalized by 16 founders, each investing $10,000 ($1/share).
It made its first acquisition in March 1994, a 73% working interest
in, and operatorship of, the Inverness oilfield in NW Alberta. Jeff
Arsenych (CEO) says financing the deal "was one of the toughest
things I've ever had to do in my life." The company raised $220,000
deposit towards the $3.5mil. acquisition through a private placement.
When it approached investment dealers to raise the balance, it
was told it would be impossible to raise that much money for a
private oil & gas company. Undeterred, Neutrino raised $3.0mil.
through another private placement.
The acquisition brought Neutrino proven reserves of 1.1mil. bbl's
of light oil. It set out to enhance the value of the property with a
horizonal re-entry drilling program, financing it through an arrange-
ment in which the partners paid 100% of the $2.6mil. drilling costs
to earn 90% of the wells revenue before payout and 50% after payout.
Neutrino went public in October 1995 with an $8.4mil. cash and
share swap amalgamation with Alberta listed Maxon Energy & Toronto
listed Red Oak Resources. The deal brought Neutrino proven
reserves of 1.56mil. reserves of medium and heavy oil, $3.0mil. of tax
pools, and a TSE listing. In May, it bought a gas property at Pine
Creek in West Central Alberta for $8.9mil.. The property includes
reserves of 22bil. cubic feet of natural gas and 961,000 barrels of
natural gas liquids. In April 1996, Neutrino closed a $420,000 special
warrants at $1.05 each. This week, it closed another $5.0mil.
placement.
The positive impact of Neutrino's acquisitions is starting to show in
its operating and financial results.
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