FINANCING / Oxbow Exploration received Receipts for Final Prospectus
CALGARY, Feb. 11 /CNW/ - OXBOW EXPLORATION INC. (ASE:OXB) announced it
has received receipts for its final prospectus dated February 9, 1998
qualifying for distribution 13,500,000 Common Shares issuable on the exercise
of 13,500,000 outstanding Special Warrants. The Special Warrants were issued
on October 21, 1997 for total proceeds of $20,250,000. The proceeds were used
to fund the purchase of oil and gas reserves, undeveloped land and seismic
data from Samedan Oil of Canada, Inc. Oxbow has 39,163,000 Common Shares
outstanding following the conversion of the Special Warrants.
Oxbow is currently producing approximately 2,400 BOE/day weighted 70% oil
and NGLs and 30% natural gas. Three core properties comprise 72% of the
Company's average daily production.
The Macoun, Saskatchewan oil property is currently producing 820 BOPD net
to Oxbow.
The Noel, B.C. natural gas property is currently producing 5.5 MMCFE/day
(4.4 MMCFE/day net to Oxbow). An additional 5.8 MMCFE/day (net 2.7 MMCFE/day)
is expected to commence production in early March.
The Rigel, B.C. oil property is currently producing from 2 wells at a
rate of 960 BOE/day (480 BOE/day net to Oxbow). A horizontal development well
spudded February 7, 1998 with a second horizontal location to follow.
Geoff Williams, President and CEO of Oxbow commenting on recent
developments in the Company said, ''The delay in start-up of new production
became unavoidable because of equipment delivery delays and rig availability.
Our review of the acquired Samedan lands is progressing. A total of 11
locations (4 development; 7 exploratory) have been selected for drilling over
the first half of 1998.''
|
