MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURSDAY, FEBRUARY 26, 1998 (7)
FINANCIAL
Mesquite Resources Inc. (MQT/ASE) announced that it has completed its private placement of an aggregate of $1.2 million principal amount of convertible debentures to Macon Resources Ltd. and Framfield Oil & Gas Ltd. The convertible debentures bear interest at a rate of 8 percent, mature on February 12, 2003, are subordinated to all indebtedness of Mesquite to its banker and are secured by a floating charge over all of the assets, present and future, of Mesquite. The debentures are convertible throughout the term into common shares and warrants of Mesquite at prices ranging from $0.35 to $0.50 per common share. A maximum of 4,571,428 common shares of Mesquite are issuable upon full conversion of the convertible debentures and exercise of the warrants. Mesquite has the right to redeem the convertible debentures after the second year of the term for the principal amount of the debentures.
As part of the private placement agreement with Macon and Framfield, Mesquite paid Macon a financing fee of 7 percent of the principal amount of the debentures. Keith Conrad and Christina Fehr, nominees of Macon, will be included in the slate of directors to be submitted by management of Mesquite for election as directors at the next annual meeting of shareholders.
The proceeds from the private placement will be used to repay indebtedness incurred in connection with Mesquite's acquisition of assets from Austex Oil & Gas Ltd. in November, 1997.
First Star Energy Ltd. (FST/ASE) announces that it has entered into a brokered Private Placement of up to 2,000,000 units of the First Star with Canaccord Capital Corporation, Vancouver, B.C.. Each unit will comprise of one common share at a price of $0.65 and one non-transferable share purchase warrant. The warrant will entitle the holder to purchasean additional share of the First Star at a price of $0.85 per share for a period of one year from the date of issuance of the warrants.
Closing of this $1,300,000 issue is expected to take place on or about March 31,1998. First Star expects to use the proceeds of the issue for the purchase of additional P&NG Leases, seismic, the re-completion of its Lochend well, participation in the drilling of its Devonian reef oil play, and participation in the drilling of an additional gas well in Kentucky.
At Strachan, the ACL et al Strachan 3-22-38-9W5 well, operated by Apache Canada Ltd., is currently at over 1000 meters and drilling ahead, with total depth expected in about 75 days.
In Kentucky, the service rig has been unable to get to the location because of the major weather problems in the area. The completion, fracture treatment and production testing of this potential gas well will begin as soon as the weather permits.
Stellarton Energy Corporation (SRT.A/ASE) today announces that the Corporation's Special Warrant offering was fully subscribed and the Corporation has closed the issue of 2,600,000 Special Warrants at $4.05 per warrant. Each Special Warrant is exchangeable for one Common Share of the Corporation at no additional cost. Bunting Warburg Inc. acted as sole underwriter for the offering.
The gross proceeds raised by the offering were $10,530,000. The net proceeds from the issuance of Special Warrants will be used by the Corporation to finance the expansion of its Secure Oil Tool Division and for general corporate purposes.
The Corporation, through Secure Oil Tools, designs, manufactures, sells and services a variety of oilfield tools used to economically increase production and reserves from oil and natural gas reservoirs. In addition to supplying equipment, Secure can provide its customers with evaluation services, custom designed equipment, equipment installation, and follow-up operations and service to ensure the equipment is continuously optimized. In addition to tool production, Secure provides field services to customers, and installation and onsite operator training to ensure clients understand and can properly monitor the technology.
Secure has four main product lines: enhanced production systems, thermal tools, sand retainment technology (MeshRite(TM)) and multi lateral production systems (MLPS).
Stellarton is an oil and gas production company and an oil field service company based in Calgary.
TriGas Exploration Inc. (TGX/TSE) announced that it has received receipts from the Alberta, British Columbia and Ontario Securities Commissions for its prospectus dated February 11, 1998 qualifying the distribution of 5.3 million Common Shares of TriGas issuable upon exercise of 5.3 million Special Warrants previously issued on October 9, 1997 at a price of $1.25 per Special Warrant. In accordance with the terms of the Special Warrant Indenture, all unexercised Special Warrants shall be deemed to be exercised as of March 2, 1998 and the Common Shares issuable thereunder shall be deemed to be issued to the holder or holders of record of the Special Warrants, without any further action on the part of the holder.
First Marathon Securities Limited acted as agent for the offering of the Special Warrants and under the prospectus.
Canadian TALON Resources, Ltd. (TAR/ASE) announced that it has completed a private placement of 1,875,000 units at a price of $0.40 per unit to Banff Holdings Ltd., a wholly owned subsidiary of Pacalta Resources Ltd. Each unit consists of one common share and zero point eight (0.8) of a common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase a common share of the Corporation for $0.50 at any time on or before February 26, 2000.
The proceeds from this private placement will be added to the general working capital of the Corporation.
Nu-Sky Energy Inc. (NUS/VSE) announced that it has received final approval from the Vancouver Stock Exchange and completed its previously announced private placement of Common Shares issued on a flow-through basis at $0.25 per Common Share.
INTERNAL AFFAIRS
Mesquite Resources Inc. (MQT/ASE) announced the following appointments in the areas of operations, exploration and finance of the company, effective March 1, 1998.
Brian Stasiuk, M.Eng.,P.Eng., has been appointed Vice President Of Production & Engineering. Brian brings 18 years of industry experience in adding value in the areas of production, optimization and engineering. For the past six years, he held the positions of District Superintendent and Chief Production Engineer with Chauvco Resources Ltd.
Michael Zander, B.SC. Geol., has been appointed Exploration Manager. He has 30 years industry experience in hands on prospect generation and exploration management, predominantly in the areas of S.E. Saskatchewan, Alberta and N.E.B.C. Mike will be responsible for directing and executing the strategy for the development of a new core area as well as for the optimization of existing properties and lands.
Stewart Larsen, C.M.A., has been appointed Controller. With 20 years industry experience as a Controller, Stewart brings the necessary diligence to the company's financial systems and accounting activities. Stewart has held progressively responsible positions with junior oil and gas companies.
Jim Wasilenkoff, P. Geophy., will continue in his role as Vice President.
This new management team provides the expertise required to accelerate the growth of Mesquite Resources from its current production capability of 280 BOE's per day.
The company also announces the resignations of Steve Takacs and Cec Palmer from their positions as officers, and thank them for their contributions.
American Leduc Petroleums Limited (ARL/TSE) announced today that The Toronto Stock Exchange has accepted its notice to make a normal course issuer bid (the ''Bid'') to purchase, from time to time, as it considers advisable, up to 500,000 of its issued and outstanding common shares (representing approximately 2.7% of the 18,779,000 Common Shares outstanding) on the open market through the facilities of The Toronto Stock Exchange. The price which American Leduc will pay for any Common Shares purchased by it will be the prevailing market price of such securities on The Toronto Stock Exchange at the time of such purchase.
The Bid will commence on March 2, 1998 and will terminate on March 1, 1999 or such earlier time as the Bid is completed or terminated at the option of American Leduc.
In the past 12 months, American Leduc purchased 29,500 Common Shares pursuant to a normal course issuer bid, at an average price of 32.1 cents per share.
American Leduc believes that the current and recent market prices of its Common Shares may not reflect their underlying value and that, at such times, the purchase of Common Shares will increase the proportionate interest of, and be advantageous to, all remaining shareholders. Any normal course purchases made by American Leduc will also afford an increased degree of liquidity to those shareholders of American Leduc who wish to dispose of their shares.
DIVIDEND NOTICES
The Board of Directors of PanCanadian Petroleum Limited (PCP/TSE), at a meeting held today, declared a dividend of ten cents (10 cents) per share payable Tuesday, March 31, 1998 to shareholders of record as of Friday, March 13, 1998.
Canadian Fracmaster Ltd. (CFC/TSE) announces the Board of Directors is pleased to announce that it has today declared a cash dividend of $0.20 per Common Share payable on March 23, 1998 to shareholders of record on March 9, 1998. The dividend payment is consistent with the Company's objective of maximizing shareholder value.
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