FIELD ACTIVITIES / Kappa Energy activity Update
CALGARY, Dec. 23 /CNW/ - Kappa Energy Company Inc. announced today the
following update on activities.
Canadian acquisition
Kappa has closed the acquisition announced on November 14, 1997 of two
private Canadian oil and gas companies. Consideration for the acquisition of
these companies was cash of $2,185,000, which has been assigned to (i)
properties of $2,870,000, (ii) working capital of $315,000 less (iii) the
assumption of $1,000,000 of long term debt. Cash flow for 1998 from Kappa's
Canadian properties is projected to be $900,000.
TSE listing
The Toronto Stock Exchange has conditionally approved the listing of
Kappa's common shares under the symbol ''KAP''. Final listing is conditional
upon the fulfillment of a number of requirements.
Yemen drilling
Kappa will be commencing drilling operations on Block 2 upon release of a
drilling rig currently under contract to another operator on Block 32.
Indications are that the Block 32 well is nearing total depth which is to be
followed by a limited test program. Timely completion of these operations
should result in the rig being released to Kappa in mid January. The first
well will spud approximately two weeks later.
Kappa Energy Company Inc. is a Calgary based international oil and gas
company with current exploration operations in Colombia, Egypt and the
Republic of Yemen. |
