Energas to acquire First Natural Gas
Energas Resources Inc EEG
Shares issued 22,123,478 Sep 22 close $0.51
Mon 25 Sept 2000 News Release
Mr. G. Scott Shaw reports
Energas Resources has entered into a purchase agreement to acquire 100 per
cent of all outstanding and issued stock of First Natural Gas, Inc. Subject
to acceptance from the Canadian Venture Exchange and completion of due
diligence, this acquisition is scheduled to close on or before Oct. 30,
2000.
First Natural, an Oklahoma corporation with its main focus on utility
growth, has been successful in buying independent gas utilities, restoring
their distribution lines and expanding their customer bases. First Natural
has been granted tariffs and authorizations from the Oklahoma Corporation
Commission to operate, build and maintain natural gas utilities. This
tariff also includes an authorization to lay telecommunication and cable
television lines, to supply water and waste water and most importantly, to
generate and sell electricity. First Natural has been an Oklahoma public
utility corporation since 1992.
To purchase the shares of First Natural, the company will issue a $600,000
(U.S.), one-year non-recourse convertible note bearing interest at 10 per
cent per year. The note is convertible at $2.00 (U.S.) per share subject to
set off for any liabilities (other than ordinary trade payables) owed by
First National. The company's ownership of First Natural is subject to
divestiture should the note not be paid or converted.
Larry Jordan, the president and chief executive officer of First Natural,
has agreed to join Energas as an employee and will continue to oversee the
daily activities of the company's new utility division. Mr. Jordan, who has
over 20 years experience in the oil and gas industry, has built six gas
utilities and two water utilities, and has managed water treatment plans
and telecommunication facilities.
"We view this acquisition as integral to our ongoing core business. The
utility status held by First Natural will provide the company with
cogeneration opportunities and a ready market for natural gas discoveries
and natural gas production acquisition," Mr. Shaw reported.
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