Tuesday March 30, 11:03 am Eastern Time
Company Press Release
WOTD Announces a Letter of Intent To Acquire Canadian Firm, Eclipse Energy
KIRKLAND, Wash.--(BUSINESS WIRE)--March 30, 1999--Western Oil & Tire Distributors, Inc. (OTC BB:WOTD - news), renamed Saratoga International Holdings, Corp. (''SIHC''), announced it has reached an agreement in principal to acquire Eclipse Energy of Calgary, Alberta, Canada.
Terms were not released. Closing will be within 90 days or upon completion of due diligence by both parties.
This acquisition will establish a foundation for Saratoga, (WOTD) to launch its venture into the energy field. Eclipse is a 30+-year-old company that has developed and sold numerous successful projects over its many years of operation. Its president and founder, Mel Algar brings 30+ years of ''Oil Patch'' experience to Saratoga. Mr. Algar noted that ''capital is always a need and now that the opportunity to acquire real value in the form of purchasing proven production in oil and gas wells is so great I believe that being public in a USA company is the best way to access the capital markets''
Eclipse has been an exploration company, an operator and an absentee owner of oil and gas wells. Mr. Algar stated that ''the oil industry in Alberta is particularly fragmented because of the proliferation of ''junior capital pool companies'' (JCP's) listed on the Alberta Stock Exchange in the last ten years.'' The droop in oil has caused in excess of 500 of these JCP's to rethink their business operations. Many will consider a buyout by a USA traded company.
Currently Eclipse has an estimated $200,000 in producing properties with a 20% to 30% annual yield from its absentee ownership of producing wells in Alberta. The company has developed a target group of JCP's who have operating wells and are interested in selling out. This will form the foundation for Saratoga's growth by acquisition operation. The goal is to acquire $10 million of revenues from producing properties within the first 18 months. Expansion into the US will be a major part of the company's initial development.
Mr. Algar will assume the role as president and chief operating officer and will join the Board of Directors. Saratoga management believes this to be the necessary step to successfully launch its energy business and is pleased to be associated with Mr. Algar and his company.
Contact
Mr. Patrick Rost of PMR and Associates, the company's corporate public relations firm may be contacted at 760/942-0015 e-mail: pmrandco@aol.com. Mr. Algar and the company can be reached by calling 800/549-6546.
This release contains forward-looking statements with respect to the results of operations and business of the company that involves risk and uncertainties. The company's actual future results could materially differ from those discussed. Risks and uncertainties of the company will be detailed from time to time in the company's periodic reports.
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Contact:
PMR and Associates
Mr. Patrick Rost, 760/942-0015
pmrandco@aol.com
or
Eclipse Energy
Mr. Algar, 800/549-6546
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