Texas T Resources corporate update
Texas T Resources Inc TXT
Shares issued 18,347,917 Oct 26 close $0.12
Thu 26 Oct 2000 News Release
Mr. Garett Greene reports
Texas T Resources has several significant events occur and would like to
provide a shareholder update:
Heavy oil acquisition completed:
Management is pleased to report that effective today's date, the company's
78 per cent owned subsidiary, Texas T Petroleum Ltd. has successfully
fulfilled all requirements as provided under the terms of an agreement
executed June, 1999, between Texas T Petroleum and Synergy Technologies
Corp., whereby Texas T Petroleum agreed to expend a total of $900,000
(U.S.) to earn 50 per cent of the issued and outstanding shares of Carbon
Resources Ltd. Under the terms of the agreement, Texas T Petroleum was also
required to issue a total of two million units of its common stock to
Synergy Technologies, each unit consisting of one common share and one
share purchase warrant entitling the holder to acquire one additional share
at $1.00 (U.S.). The transactions were financed by way of a private
placement between Texas T Petroleum and Capital Reserve Corp., whereby
Capital Reserve will acquire two million units of Texas T Petroleum at 50
cents per unit, each unit consisting of one share and one share purchase
warrant entitling the holder to acquire one additional share at $1.00
(U.S.).
Upon issuance of the two million units to Synergy Technologies and the two
million units to Capital Reserve, the company's ownership of its
subsidiary, Texas T Petroleum, will be reduced to 64 per cent.
Carbon Resources, now 50 per cent owned by Texas T Petroleum, holds all
rights in and to a patented and proprietary technology called CPJ for the
upgrading of heavy oil to more valuable lighter oil. CPJ uses an
instantaneous thermal transfer in conjunction with mechanical shear from
high temperature steam, rather than injected hydrogen gas, to split the
very large hydrocarbon molecules comprising heavy oil, forming lighter
oils. As a result, the technology is believed to offer up to 70 per cent
savings over competing technologies.
Upgraded heavy oil, which currently makes up six to 10 per cent of the 75
million barrels per day of worldwide oil production, is expected to
increase to 25 per cent of worldwide oil production over the next decade.
For the most recent information on the continuing joint development of the
CPJ technology, please refer to the company's news release in Stockwatch
dated Sept. 21, 2000.
Texas T Petroleum and Synergy Technologies anticipate meeting over the next
few weeks to set out operating parameters for this new joint venture and
review proposals for the continuing development of the technology.
The company expects to provide additional updates as information becomes
available.
Litigation settled:
Texas T Petroleum was a working interest owner in several properties in
Colorado and Wyoming operated by Bataa Oil Inc. There were operational
disputes in relation to the properties and in 1999 Texas T Petroleum became
a party to four separate actions between Bataa Oil and other parties,
including a lawsuit against Bataa Oil for defamation. A detailed
description of the litigation is provided in the company's financial
statements and quarterly filings. The company is pleased to report that
settlement has been reached with Bataa Oil on all of the pending
litigation. Under terms of the settlement, Texas T Petroleum has received
total value of $1,715,000 (U.S.) and has assigned to Bataa Oil its 20 per
cent interest in both the Spindle/VVaftenberg and Kejr prospects, and a
50-per-cent interest in development leases known as Sage Creek. The company
was named as a defendant by one of the parties to a related legal action
that has not yet settled. Management intends to vigorously defend this
action and is confident that it will prevail and will be awarded damages.
Private Placement completed:
The company received approval for a private placement announced on Aug. 1,
2000, from the Canadian Venture Exchange on Sept. 25, 2000. The placement
consisted of three million units at 10 cents per unit, each unit consisting
of one share and one share purchase warrant entitling the holder to acquire
an additional share at 13 cents per share for a period of two years. The
company has allocated proceeds raised totalling $300,000 towards one year
of working capital.
Board of directors:
The company confirms with the following changes to the board of directors.
Alex Burton and Desmond Smith have resigned from the board of directors of
the company. Garatt Greene will replace Mr. Smith as president temporarily.
To comply with the requirements for a resident B.C. director, James Marsh,
will join the board of directors until such time as a replacement director
can be found.
Future plans:
The company's plans for the immediate future will be to focus all of its
resources on the development of the CPJ technology.
WARNING: The company relies upon litigation protection for
"forward-looking" statement.
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