And we got more
Exall And Kicking Horse Resources Ltd. Announce Acquisition Of Oil And Gas Assets
09:44 GMT-04:00 Thursday, July 26, 2001
Exall Resources Limited and Kicking Horses Resources Ltd. (CDNX-KHL) are pleased to announce that an agreement has been reached to purchase
certain oil and gas assets in central Alberta for $72,500,000. The acquisition will be effective as of January 1, 2001 for revenue adjustment purposes and
interest on the purchase price from that date will accrue to the vendor. Exall began looking for oil and gas assets in Alberta some years ago to augment
cash flow from mining activities. Exall formalized relations with KHL in the past year in order to jointly search for acquisition targets. Exall will acquire
a 30% interest in the transaction from KHL with financing, in part, from existing cash reserves and bank debt. Exall is also in discussions with
investment bankers who have expressed interest in a "flow-through share financing."
The acquisition is subject to the approval of the Court of Queen's Bench of Alberta. The Companies will release further details on the acquisition
following final court approval.
Independent engineering evaluation of the assets estimates total proved reserves to be 4.0 million barrels of crude oil and natural gas liquids and 21.6
billion cubic feet of natural gas. Current production from the purchased assets is approximately 3,079 barrels of crude oil and natural gas liquids per day
and 12.3 million cubic feet of gas per day, for a total of 4,300 barrels of oil equivalent (BOE) per day. Kicking Horse has received an independent
environmental audit indicating the total environmental liabilities associated with the acquisition to be approximately $22,600,000. Also included in the
acquisition are proprietary 2D and 3D seismic data covering approximately 145 square kilometers and significant successored tax pools.
"It was always Exall's intention to diversify its operating base since the gold market has been under pressure for some time. This acquisition will replace
cash flow previously received from mining operations as well as utilizing significant tax pools Exall will have available as a result of the transaction. The
acquisition will be immediately accretive to Exall's earnings," said Stephen Roman.
Exall's previously announced transaction with Oltchim SA is progressing with syndicate members now completing financing arrangements. This
transaction is expected to close in August if all indicated funds are received.
Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall recently
signed a definitive agreement for the acquisition of a 53.258% controlling interest in Oltchim SA, Romania's largest petrochemical company. Exall also
operates the Glimmer Gold Mine in Matheson, Ontario as agent for the Glimmer Mine Joint Venture and participates with a 52% interest in this mining
project.
FOR FURTHER INFORMATION CONTACT: Stephen G. Roman, Chairman, President and CEO (416) 368-3949
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