MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING WEDNESDAY, FEBRUARY 18, 1998 (8)
SERVICE SECTOR NEWS
Venture Seismic Ltd. (VSEIF/NASDAQ) announced it has entered into a revised letter of intent to acquire 100 percent of the outstanding capital stock of Continental Holdings Ltd. ("Continental"), for consideration of 2,080,000 Common Shares of Venture Seismic Ltd. ("Venture") and payments in cash of an aggregate of $1.5 million. All amounts which follow are in U.S. dollars
Pending closing of the acquisition, Venture has agreed to advance $4 million to Continental to equip a second marine seismic vessel, which advance is subject to an equity conversion provision should closing not occur. The letter of intent also includes provision for employment agreements with the existing management of Continental.
Continental is a privately held marine seismic data acquisition company, based on Calgary, which currently operates one marine seismic vessel capable of performing both 2D and 3D seismic surveys. Continental has completed seismic surveys in the Persian Gulf, the North Sea, the Falkland Islands area, the Mediterranean and off the coasts of West Africa and Norway. According to financial information supplied by Continental, audited revenue for its year ended Dec. 31, 1996 and $8.6 million and net income, adjusted for normalized owner/management compensation, was approximately $600,000. For the nine months ended Sept. 30, 1997 Continental recognized revenue of approximately $7.1 million and unaudited net income of approximately $1.6 million. Certain financial information relating to Continental is included in Venture's Annual Report on Form 10-KSB as filed with the Securities and Exchange Commission on Dec. 24, 1997.
Brian Kozun, president & CEO of Venture stated "The amended letter of intent allows Venture to proceed with the announced acquisition while providing Venture the flexibility to use a portion of its existing cash resources to equip a second marine vessel, which Continental estimates will be operational by July 1998."
The Continental acquisition is subject to a number of conditions, any of which may not occur, including execution of a definitive purchase and sale agreement, receipt of requisite shareholder, regulatory and/or third party approvals and completion of due diligence. The companies anticipate entering into a definitive agreement upon completion of due diligence and closing upon receipt of the requisite approvals.
Venture Seismic Ltd. is traded on the Nasdaq National Market and is engaged primarily in the acquisition of land and wetlands seismic data for use in the exploration for and development and field management of oil and gas reserves. The Company utilizes both traditional two-dimensional ("2D") and more technologically advanced three-dimensional ("3D") seismic data technology to acquire data on possible oil and gas reserves for its customers, which range from junior exploration companies to fully-integrated multi-national corporations. Venture's subsidiaries include Boone Geophysical, Inc., a Texas based company engaged in the acquisition of land and wetlands seismic data in the Southern United States, and Hydrokinetic Surveys of Canada Inc., a company based in Western Canada which provides shallow marine airgun and survey services.
Also see Kerms top 221 - spec 15 - serv 9 and watchlist companies in the news.
PIPELINE NEWS
NOVA Gas Transmission Ltd. Record Natural Gas Volume
Message 3466215
EARNINGS REPORTS
Badger Daylighting Inc., (BAD/TSE) See kerms top 21 - Spec 15 - Serv 9 companies in the news.
Rigel Energy Corp. (RJL/TSE) See Kerms watchlist of companies in the news.
Summit Resources Limited (SUI/TSE) See Kerms watchlist of companies in the news.
Saxon Petroleum Inc. (SXN/TSE) See other companies in the news.
Burner Exploration Ltd. (BXP/ASE) See other comanies in the news.
Canrise Resources Ltd. (CRE/TSE) See other companies in the news.
Alberta Energy Comapny Ltd. (AEC/TSE) See Kerms top 21 - spec15 - serv 9 companies in the news
Gulf Indonesia Resources Limited (GRL/NYSE) See international companies in the news
FINANCIAL
Rock Capital Corporation (RCK/ASE) announced that it has completed the previously announced private placement of 2,195,000 common shares at a price of $0.31 per share.
The Corporation intends to use a portion of this private placement to finance the acquisition of a 62.5 % interest in three oil wells located in the Roncott area of Saskatchewan from Black Canyon Resources Inc. for total consideration of $500,000. An independent engineering report suggests that the property on which the wells are located has proven producing reserves before royalties of 185,000 barrels of oil with daily production in the order of 29 barrels of oil per day. This acquisition is anticipated to close on Friday, February 20, 1998.
Crestar Energy Inc. (CRS/ TSE & ME) See Kerms top 21 - spec 15 - serv 9 companies in the news.
Newstar Resources Inc. (NER/TSE - NASDAQ/NERIF) announced that it has negotiated a U.S.$50 million senior revolving credit facility with a major Houston based energy lender. Message 3466196
DIVIDENDS
Akita Drilling Ltd.'s (AKT/TSE) Board of Directors approved the payment of a quarterly dividend to shareholders. AKITA Drilling Ltd, declared an ordinary cash dividend of six cents ($0.06) per share on the outstanding Class A Non-Voting and Class B Common shares of the Corporation with a Record Date as at the close of business on March 20, 1998 and a payment date of April 1, 1998.
MISC.
Energy Communications Inc. will hold their second Saskatchewan Oil and Gas Investment Forum. This session features three dynamic oil and gas companies who will provide you with a time efficient insight into their
inherent investment opportunities. All are demonstrating rapid growth and share appreciation and will benefit from stronger commodity prices.
The executives of the participating companies will each give a brief, visually supported presentation on their corporate strategy and on the projected growth of their respective corporations. These firms have collectively budgeted for over $44 million in capital expenditures for the 1998 fiscal year.
Sufficient time will be provided in an informal environment to meet with, and direct questions to the participating company executives after the luncheon.
We encourage all to extend this invitation to your clients or other interested investors.
Call 403-266-7209 to register or fax your name, company name, address and phone number to 1-800-832-8281
There is no charge for this function.
Please choose one of the following venues:
Saskatoon: Wednesday, Feb. 18th, 1998
Radisson Hotel Saskatchewan
11:30 - 1:00 P.M.
Regina: Thursday, Feb. 19th, 1998
Hotel Saskatchewan, Radisson Plaza
11:30 - 1:00 P.M.
The presenting companies are:
OPAL ENERGY INC.
TSE Symbol - OPE
Oil & Liquids: 1,300 BOPD
Gas: 8.12 MMCFD
Areas of Exploration and Production
Oil: Freemont, Epping (Sask)
Gas: Gilby, Clive, Atlee
PURCELL ENERGY LTD.
TSE Symbol - PEL
Daily Production Rates
Oil & Liquids: 720 BOPD
Gas: 7.8 MMCFD
Areas of Exploration and Production
Primarily Alberta & Saskatchewan
BEAU CANADA EXPLORATION LTD.
TSE & ME Symbol - BAU
Daily Production Rates
Oil & Liquids: 9,700 BOPD
Gas: 70.0 MMCFD
Areas of Exploration and Production:
BC, Alberta and Saskatchewan
Please make note of this. The Financial Post may be thinking of eliminating columns from their internet site. Send them a short e-mail message telling them that you hope dropping of the columns is only temporary. Here is the address: Executive Producer. Email: swickens@canoe.ca
These columns provided quite a little of information related to the Canadian Oils.
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