JCP - MAJOR TREANSACTION / ABX Resources Property Acquisition
ABX RESOURCES INC.
ASE SYMBOL: ABR
JANUARY 21, 1998
ABX Resources Inc. Announces Completion of Major
Transaction
CALGARY, ALBERTA--ABX Resources Inc. (the "Corporation") (ASE:
"ABR") is pleased to announce that it has closed its Major
Transaction and a private placement of 1,200,000 common shares.
Approval of the Major Transaction and private placement was
obtained from the shareholders of the Corporation at an annual
general and special meeting of the Corporation's shareholders
which was held on January 6, 1998.
The Corporation's Major Transaction was comprised of the purchase
of a 2.5 percent working interest in well 5-29-48-12-W5, located
in the Brazeau River area in Alberta, which includes a 2.5 percent
working interest in the natural gas rights covering Section 29 and
a 2.5 percent working interest in the oil rights in the oil
spacing unit of well 5-29. Production from these properties will
be subject to new crown royalty and a small gross overriding
royalty. Chapman Petroleum Engineering Ltd., independent
engineering consultants, evaluated the properties and valued the
reserves at $474,200.00, for the proven producing reserves, and
$30,800.00, for the proven non-producing reserves (net to the
Corporation's appraised interest; based on a discount of 15
percent). In consideration for the properties, the Corporation
paid to Prairie Pacific Energy Corporation the sum of four hundred
thousand dollars ($400,000.00) in cash.
In conjunction with the Major Transaction, the Corporation also
completed a private placement of 1,200,000 common shares at a
price of $0.25 per common share. The private placement was, in
part, non-arms' length. The completion of the private placement
was a condition precedent to the closing of the Major Transaction.
The Corporation expects to shortly file final documentation with
The Alberta Stock Exchange regarding the Major Transaction and
private placement in order that it may be removed from the JCP
Board of The Alberta Stock Exchange. |
