ACQUISITION / Calibre Energy announces Take-Up of Trego Energy Shares
CALGARY, Jan. 27 /CNW/ - Mr. R. Dean Smith, President and Chief Executive
Officer of Calibre Energy Inc. is pleased to announce that over 97% of the
outstanding shares of Trego Energy Inc. have been tendered to Calibre's offer.
Calibre has instructed CIBC Mellon Trust to pay for the Trego shares deposited
and will be proceeding to acquire the remaining Trego shares pursuant to the
compulsory acquisition provisions of the Business Corporations Act (Alberta).
Mr. Smith stated ''1997 has been an extraordinary year of activity. The
appointment of both a new Board of Directors and an energetic, aggressive
management team has generated the phenomenal growth in a very short period of
time. The combination of the two companies really brings to a conclusion
Calibre's largest transaction of the 1997 period. The successful takeover
of Trego expands Calibre's interest in two of our three core operating areas
and when combined with our previous acquisitions and a remarkable drilling
success record approaching 94%, production levels have increased from 380
Bopd at the beginning of 1997 to over 2,000 Bopd by the end of January, 1998.
Our net undeveloped land base increased from 8,500 acres at the beginning of
1997 to the present 64,000 acres. We have identified nearly fifty drilling
prospects on existing lands, an almost two year drilling inventory. On a
go-forward basis, Calibre will drill a minimum of twenty wells in its three
core areas and, net of normal decline rates, will comfortably push through
3,000 Bopd by the end of this year. Our 1998 cash flow will jump
substantially to approximately $10 million ($0.40/share) due principally to
our light quality, low cost, long term oil production base in southeast
Saskatchewan. The Calibre management team has focused its attention on
creating a production and drilling base inventory which will, to a large
degree, insulate us from short term market and commodity shocks.
I welcome the Trego shareholders who have now become Calibre shareholders
resulting from this transaction. As I'm sure you can see, I am extremely
excited about Calibre's future. The results of the hard work in 1997 are but
an indication of things to come for Calibre.''
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