Dakota - Fastway Acquisition Completed
MARCH 3, 1998
CALGARY, ALBERTA--DAKOTA RESOURCES LTD. is pleased to announce that it has completed the acquisition of Fastway Exploration Ltd. effective today. As previously announced, consideration for the transaction was $800,000. This was completed by way of debt financing through the Bank of Montreal for $300,000 and cash of $500,000.
Fastway, with a thirteen-year history in Western Canada, will operate as a wholly owned subsidiary of Dakota. For the five months ended January 31, 1998, Fastway had revenues of $4.03 million and an operating income of $849,000. These figures include the relatively weak first quarter -- historically, Fastway's slowest. It is important to realize that this performance is credited towards Dakota because the company was purchased in its entirety on a share basis, not on an asset basis.
For reporting purposes, operational performance will be detailed in the next quarterly report for the period ending March 31. This will include two additional months of peak season activity.
Additionally, Fastway has recently entered into a leasing arrangement for seismic procurement in the Ukraine after the domestic peak season ends in April. This is a start towards international operations that will optimize equipment utilization on an annual basis and diminish some of the seasonality associated with the industry.
Secondarily, after several weeks of further due diligence, the company would like to announce that it has elected not to pursue the acquisition of G.L. Fabrications as previously announced. The company is assessing other acquisitions that better meet its criteria for enhancing shareholder value.
Dakota is a junior company that is returning to its roots in the oil and gas sector, specifically in service. Fastway represents the first acquisition of in this regard. The company has a website and email address which are telusplanet.com and Dakota_Resources@telusplanet.net.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dakota Resources Ltd.
Richard LeBlanc
Executive Vice President
(403) 221-7715
telusplanet.com
Dakota_Resources@telusplanet.net
The Alberta Stock Exchange has neither approved nor disapproved the information herein contained. |
