TORONTO--(BUSINESS WIRE)--Nov. 20, 1997--United Tri-Star Reso
(TSE:UTS.) In connection with our joint venture in the Athabasca
Tar Sands, Koch Exploration Canada Ltd. issued the following news
release today:
"(Calgary) A bid for Solv-Ex assets from Koch Exploration Canada
Ltd. of Calgary was accepted today in simultaneous court proceedings
held in both Calgary and Albuquerque. The bid involved Solv-Ex
retaining a 12 percent stake, United Tri-Star Resources Ltd. (UTS)
holding 10 percent, and Koch, as major shareholder, with 78 percent.
Other terms of the bid are similar to Koch's original bid, including
the dollar amount and debtor in possession financing. Separately,
Koch has also entered into an agreement with Geopetrol Resources
Ltd., the terms of which have not been disclosed.
"Today's approval in the Canadian and American courts brings a
positive resolution to the costly, time consuming and complex legal
issues for creditors and stakeholders, and means that outstanding
issues can be resolved in a timely manner. Plans for future
development can finally get underway," said Steve Kromer, President
of Koch Exploration Canada Ltd. "These assets are a logical step in
Koch's plans to grow and develop its Canadian business operations".
A forty year history focused on heavy oil recovery, purchasing,
transportation and refining has provided a solid background for
Koch's participation in this development. Potential production from
this oilsand sale will become a part of Koch's overall strategy to
supplement feedstock requirements for its Minnesota refinery.
"Refinery requirements have been, and will continue to be far in
excess of what Koch Exploration is producing in Western Canada."
said Doug Beach, Vice President of Koch Oil Co. Ltd., "Because of
this, valued relationships with both large and small producers and
their respective products will continue to be an important part of
Koch's Canadian business operations.
Subject to certain conditions, including the extension of the
oilsand leases by the Government of Alberta, Koch is planing to move
forward with the bitumen extraction technology that maximizes the
resource potential of the mining site, and optimizes the benefits of
the project for everyone involved, including communities, employees,
contractors and other stakeholders. These plans will encompass an
assessment of Solv-Ex's and Geopetrol's technologies among others and
will provide Solv-Ex the opportunity to develop their mineral
extraction technology separate from bitumen operations.
Koch (pronounced "coke") Exploration Canada Ltd, is a
wholly-owned subsidiary of Koch Industries Inc. Founded in 1940
and based in Wichita, Kansas, Koch Industries is the second largest
privately-held company (by revenue) in North America.
Koch has conducted business in Canada's oil and gas industry
through a number of subsidiaries since 1959. It is one of the
largest marketers, and the largest exporter and refiner of Canadian
crude oil, representing 14 percent of the volume shipped through the
Interprovincial Pipe Line System.
In Canada, Koch's nearly 600 personnel are engaged in heavy oil,
oilsands and gas exploration and production, oil and natural gas
marketing, asphalt products, capital services, and the manufacturing
of industrial products."
United Tri-Star looks forward to working with Koch in the future
development of the project. |
