-----News----
2/17/00 -
Agreement to Sell Taylor Rig Interest
WESTREND (OIL & GAS) TECHNOLOGIES CORP. ("WRN-V") -
Agreement to Sell Taylor Rig Interest
Kelly Fielder, President & Director of Westrend (Oil & Gas) Technologies Corp.
announces that, subject to regulatory and shareholder acceptance, it has entered
into an Agreement of purchase and sale whereby the Company has agreed to a
redemption of its interest in Taylor Rig, LLC of Tulsa, Oklahoma for a cash
purchase price of U.S.$600,000.00. The purchase price is payable by way of a
nominal down payment, a $25,000 payment by the end of July, 2000, and the
balance thereafter by way of Taylor Rig making monthly payments equal to 1.5%
of its gross sales. The Company currently holds a 72.5% interest in Taylor Rig;
however, an overriding shareholders agreement irrevocably delegates management
of Taylor Rig until 2004 to Oscar Taylor and Brett Taylor, the minority interest
holders. The Agreement provides that while the Company's interest in Taylor Rig
can be redeemed in increments down to the Company holding 50.5% of Taylor
Rig, the majority interest must be fully paid for before it is redeemed. If regulatory
acceptance cannot be obtained, or is not otherwise waived, Taylor Rig will have
the option of requiring the Company to repay any purchase monies paid together
with interest at 15% per annum. Until the redemption is complete, the Company
will continue to hold a seat on the Board of Taylor Rig and participate in
fundamental decisions of management.
Management negotiated this Agreement after consultation with the Company's U.S.
accountant who obtained full access to the books and records of Taylor Rig in
connection with the preparation of Company financial statements. Despite strength
in oil & gas prices, Taylor Rig has not experienced any increasing demand for the
service rigs that It produces. Furthermore, Taylor Rig has limited cash resources
and limited net assets, Taylor Rig management have expressed an intention of
diversifying into one or more new businesses which will require an injection of
capital. Such funding will have to come from a new group as the Company has
limited resources and Company management plan on locating a non-resource
acquisition target towards creating shareholder value. It was also evident that
Taylor Rig management were hampared in attracting new capital with Taylor Rig's
existing share structure. Finally, Taylor Rig management feel they now have a
strong incentive to develop the business of Taylor Rig.
Update on Company Status
Company management also wish to confirm that Alamo Wireline Inc., in which the
Company holds a 50% interest, is currently dormant. Alamo is currently indebted
to the other 50% shareholder, Hartfield Services, by an amount that exceeds the
net assets of Alamo. A proposal has been made by Hartfield for reactivation of
Alamo, however, such proposal provides for the Company to fund all such
reactivation activities. Management are considering various courses of action, with
a disposition for nominal consideration quite likely.
Management also wish to confirm that there have been delays with its U.S.
accountants in preparing the necessary financial statements of the Company for
filing with the British Columbia Securities Commission towards lifting the cease
trade order currently outstanding against the Company. Management have notified
the accountants that the completion of the financial statements is of the highest
priority, Management will be taking all necessary steps, subject to its limited
resources, to push this process forward. Management are concurrently working on
a reactivation of the Company and addressing certain past disclosure deficiencies
raised by the Commission.
The Company is pleased to announce the appointment of Vera Neate of
Vancouver as the Secretary of the Company. TEL: (604) 646-8888
Westrend (Oil & Gas) Technologies Corp.
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