FINANCING / TecnoPetrol Completes US$4 Million Offshore
Offering
CANADIAN DEALING NETWORK SYMBOL: TPTE.U
FEBRUARY 19, 1998
TORONTO, ONTARIO--TecnoPetrol Inc. has successfully completed its
previously announced US$4 million offshore offering of 8,000,000
Units at US$0.50 per Unit, each Unit consisting of one common
share and one-half of one share purchase warrant, with each whole
warrant being exercisable at US$0.80 on or before February 17,
1999. A second and final closing consisting of 1,600,000 Units at
the same subscription price is scheduled to take place within
fifteen business days, for additional net proceeds of US$800,000.
TecnoPetrol will use the proceeds of this offering to fund its
exploration activities in Colombia. At present, seismic work is
being performed in the Vuelta Larga Association Contract area, in
which the Company has a fifty percent interest through a farm-in
arrangement with Emerald Energy plc, with drilling expected to
start by year-end. Geological studies are being carried out in
the Company's Alejo Association Contract area, with seismic
scheduled for the second quarter of this year and drilling
expected to commence at the beginning of next year.
TecnoPetrol recently acquired a 60.91% interest in Petronorte, a
long-established Colombian operating company with gross production
of 2,000 b/d and excellent exploration potential. Petronorte's
properties are located in the Middle Magdalena Valley in the
immediate vicinity of Harken Energy Inc.'s Bolivar contract.
Harken recently announced the successful completion in this area
of its first well, "Catalina", through horizontal drilling into a
fractured cretaceous carbonate reservoir, with estimated
production of a total of 9,000 b/d of 38 degree gravity oil
equivalent. TecnoPetrol has already commenced 3D seismic
recording in the Petronorte areas and drilling of the first of
eight identified prospects is expected to start in August, 1998.
Drilling in the Petronorte areas will be over 3,000 feet of
fractured carbonate reservoirs similar to Harken's, where
significant reserves of 38 degree or higher gravity oil are
expected. The utilization of horizontal wells, drilled with the
most advanced technologies, is being contemplated by the Company.
TecnoPetrol also has additional acreage in Colombia under
application. TecnoPetrol commenced its activities in Colombia at
the beginning of last year, with full operations commencing in the
middle of 1997. TecnoPetrol's growth has been described by
Petroconsultant, an international oil trade publication, as
constituting a rapid entry in 1997 as an exploration and
production company in the Colombian market.
All of the 8,000,000 Units were purchased by Naphtha Inc., a
nominee of Grupo Financiero Popular ("GFP"), which is a Latin
American regional financial services group with commercial banks
in Ecuador, Colombia and Venezuela and extensive experience in
investing in Latin American markets. With the purchase of the
Units, GFP becomes TecnoPetrol's largest shareholder, holding
approximately 34% of the issued and outstanding capital of the
Company. The issuance of the 8,000,000 Units has resulted in the
increase of the Company's issued and outstanding capital to
23,189,168 common shares.
The offering was underwritten by Andino Capital Markets Inc.
("ACM"). ACM is GFP's investment banking arm, exclusively
dedicated to financial activities in the Latin American region.
TecnoPetrol is an oil and gas exploration and production company
whose current focus is on Colombia. TecnoPetrol also has various
exploration properties at differing stages of development.
Issued and outstanding shares as of February 19, 1998 - 23,189,168 |
