EGG's News Release about agreement with Slocan. Also contains additional info regarding directors, stock options, etc. NOT contained in the Slocan News Release.
NEWS RELEASE Tuesday, October 7, 1997
Ebony Gold & Gas Inc. ("the Company") is pleased to announce the sale of its 10% working interest in the Hurricane Creek Field in Arkansas to Slocan Holdings Ltd.
Ebony has received a down payment of USD $25,000 and will receive a further USD $110,000 by assignment of 25% of the income payable to Slocan from the Hurricane Creek Field. Slocan also agreed to pay USD $47,500 to the operator for cash calls relating to the construction of a pipeline to some of the shut-in wells. An introduction fee is also payable with respect to the transaction. The sale is subject to regulatory approval.
Ebony has accepted resignations from directors Ed Poston and Robert Barnes. The directors will be interviewing candidates with oil and gas expertise to fill these vacancies for the remainder of the term.
Ebony has commenced drilling a 2,200-foot Knox test on the Ledbetter lease offsetting Ledbetter #1, #2 and #3 by approximately 1,600 feet, 1,200 feet and 1,200 feet respectively.
The Company also announces the granting of incentive stock options to a certain Director and Employees, entitling them to purchase up to a total of 200,000 shares of the Company at a price of $0.35 per share for a period of five years, subject to regulatory acceptance.
The Company also announces the renegotiation, subject to regulatory
acceptance, of the exercise price of certain existing incentive stock
options from $0.85 and $0.65 to $0.35 in respect of a total of 352,000
shares held by a director and certain employees. Other directors' options totaling 200,000 shares remain unchanged.
EBONY GOLD & GAS INC.
James M. Blair
Chairman & C.E.O. |
