FIELD ACTIVITIES / Nevis Petroleum signs Agreement with Suncor Energy
Nevis petroleum corporation (the "Corporation") a junior capital pool company
announced today that it has signed a Purchase and Sale Agreement with Suncor
Energy Inc. The Purchase and Sale Agreement contemplates the acquisition of
an 18% working interest in the Boundary Lake South Triassic "C" oil Unit, in
Northwest Alberta. This arm's length transaction is proposed to be the
Corporation's Major Transaction, as contemplated by Alberta Securities
Commission Policy 4.11 entitled, Junior Capital Pool Offerings ("Policy
4.11") and Circular No. 7 of The Alberta Stock Exchange ("Circular No. 7").
Pursuant to the Purchase and Sale Agreement, the Corporation would be
required to make a payment of $ 793,000.00, which will be financed by a
combination of cash from the treasury and a production loan from a Canadian
Chartered Bank.
In addition, and in conjunction with the Corporation's Major Transaction, the
Corporation intends to complete a private placement of approximately
1,300,000 common shares to be issued at 0.25 per share.
The property yielded an estimated net average production of 21 barrels per
day in 1997. Proven developed producing and undiscounted probable oil
reserves net to the Corporation before royalties are estimated to be 103,900
barrels. The probable oil reserves after discounting by 50% for risk are
estimated to be 19,300 barrels.
For further information, please contact:
W. (Bill) Barclay,
President & Chief Executive Officer
of the Corporation
at (403) 237-5155. |
