Claude, just noticed this. Is this a co. they stumbled onto through their work in china??
Terry
Southwestern invests in Maxy
Southwestern Gold Corporation SWG
Shares issued 15,298,280 Jul 5 close $3.60
Tue 6 Jul 99 News Release
Also Maxy Oil & Gas Inc (MXY)
Mr. George Plewes reports
Southwestern Gold Corporation has acquired by way of private placement 3.2
million units of Maxy Oil & Gas Inc. at a price of 90 cents per unit for a
total purchase price of $2,880,000. Each unit consists of 2.387 common
shares, resulting in the acquisition by Southwestern Gold of 7,638,400
shares of Maxy Oil & Gas Inc., representing 26 per cent of its outstanding
shares. On Nov. 1, 1999, 3.2 million shares will become free trading and
the remaining 4,438,400 shares will be released from escrow upon receipt of
regulatory approval.
Maxy Oil & Gas Inc. is an oil and natural gas exploration company
incorporated under the laws of the province of British Columbia. Currently,
the company's principal business focus is on natural gas exploration in the
Sichuan Basin of China.
The Sichuan Basin is the most prolific natural gas producing basin in
China. The province has an extensive natural gas pipeline infrastructure in
place and supports a robust and growing gas market. Gas pricing is strong
and stable, averaging about $2 (U.S.) per million cubic feet.
In December, 1998, Maxy entered into a joint venture with Texaco China BV
to explore the 14,000-square-kilometre Yaan block in Western Sichuan. Under
that agreement, Maxy acquired a 25-per-cent working interest and Texaco
retained the remaining 75-per-cent interest and operatorship of the block.
China National Petroleum Corporation has the right to back-in for a
51-per-cent working interest after the block proves to be commercial.
The first exploratory well on the Yaan block, the Sanhenan No. 1, was
recently drilled to a depth of 3,132 metres and is in the process of being
tested. Well logs have indicated potential pay in several zones. The
Sanhenan structure is 20 kilometres southwest and on trend with the
producing Pinglouba field that has proven gas reserves estimated at one
trillion cubic feet. Evaluation of the Sanhenan No. 1 well should be
complete by mid-July.
Maxy has also acquired the exploration rights to the 5,500-square-kilometre
Longmenshan block, adjacent to the Yaan block, through an agreement with
China National Star Petroleum Corporation. Maxy expects to have government
approval to begin exploration of that area by the end of the year.
Southwestern Gold characterizes the acquisition of shares in Maxy Oil & Gas
Inc. as an excellent investment that diversifies its portfolio. John
Paterson, president of Southwestern Gold, has been appointed a director of
Maxy Oil & Gas Inc.
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