NORMAL COURSE ISSUER BID / Scimitar Hydrocarbons
CALGARY, Feb. 19 /CNW/ - Scimitar Hydrocarbons Corporation (ASE: SIY)
announced today that it has received approval from The Alberta Stock Exchange
to make a Normal Course Issuer Bid (the ''Bid'') to purchase, from time to
time, as it considers advisable, up to 1,154,955 of its issued and outstanding
Common Shares (''Shares'') (being 5% of the issued Shares of Scimitar) on the
open market through the facilities of The Alberta Stock Exchange. The price
which Scimitar will pay for any shares purchased by it will be the prevailing
market price of such shares on The Alberta Stock Exchange at the time of such
purchase.
The Bid will commence on February 23, 1998 and will terminate on February
23, 1999 or such earlier time as the Bid is completed or terminated at the
option of Scimitar.
Scimitar believes that the recent and current market prices of its Shares
do not fully reflect the underlying value of the Shares and that, accordingly,
the purchase of Shares would be in the best interests of Scimitar
shareholders. Scimitar bases this decision on internal valuation of its
current development projects which, in Scimitar's view, have a net present
value exceeding $50,000,000 and without taking into account Scimitar's
exploration projects and other assets, cash on hand and absence of debt.
Purchases by the Corporation of its Shares will increase the proportionate
share interest of, and be advantageous to, all remaining shareholders. In
addition, the purchases by Scimitar will afford increased liquidity to
Scimitar shareholders wishing to sell their Shares.
Headquartered in Calgary, Canada, Scimitar's current projects include a
heavy oil development in Egypt, gas and liquids exploration and exploitation
in the United Arab Emirate of Ajman, gas exploration in Mozambique, petroleum
product marketing in eastern Africa and exploration in western Canada. |
