Here is an interesting interview from January that I found when I was cleaning up my old web pages:
Friday January 31 8:53 AM EST
INTERVIEW- Oilex International Investments Inc sets funds to up output
By Jim Brumm
NEW YORK, Jan 31 (Reuter) - Oilex Inc has closed on financing that will allow it to increase production to 3,000 barrels of oil daily by the end of July from the present level of 300 barrels per day, Allen L. Burditt II told Reuters.
He's the sole owner of Phoenix Reserves Inc , which owns 51 percent of Oilex's stock and is making another investment in the developer of low risk oil and natural gas properties.
Burditt said Phoenix and Oilex President Oliver H. Timmins III have agreed to invest $1.5 million in a new issue of 10 percent convertible preferred stock.
Still to be negotiated, he said, is the number of common shares the preferred will be convertible into, but did note that the stock probably will not be convertible for the first two years after it is issued.
Timmins now holds 3 million of the company's 26 million outstanding shares, Burditt said.
He said Oilex will report a profit for the first time first quarter and will be "profitable throughout" 1997, adding the company has a $6.5 million tax loss carryforward.
The proceeds from the preferred sale will be invested in infill drilling in the company's Big Foot Field in Frio County, Texas, and Revilo Unit in Scurry County, Texas.
Burditt said Oilex plans to raise up to $10 million in debt and equity this year to fund its expansion.
Last week it moved to secure a supply of the portable swabbing units it uses to produce oil, acquiring a 20 percent interest in the equipment maker, privately owned Oil Retrieval Systems Inc , in exchange for 3 million Oilex shares, he said.
As part of the acquisition, Oilex said in an annoucement of the transaction, the company has a 30 day preferential first right of refusal on all units Oil Retrieval builds on speculation for a period of three years.
The agreement also gives Oilex input on design for maximum engineering and field utilization of each unit, it said.
At the time, Oilex said Oil Retrieval also acquired a 25 percent working interest in the Revilo Unit in exchange for providing a minimum of three portable swabbing units.
Oilex said it also placed an order for a minimum of five additional units to be built in 1997 with the first delivery expected delivery in April.
With these units, Burditt said, the company's lifing cost is $2.50 per barrel of oil compared to $8 per barrel with normal swabbing methods.
((-- New York Newsdesk 212-859-1610.)) |
