OLEX-NEWS:
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Caye Chapel, Inc. Signs Letter of Intent to Acquire Drilling Company
PR Newswire - March 03, 1998 16:30
CAYC OLEX %OIL %TNM V%PRN P%PRN
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LAS VEGAS, Nev., March 3 /PRNewswire/ -- Caye Chapel, Inc.
(OTC Bulletin Board: CAYC) announced today that it has signed a letter of
intent to acquire privately owned McCormick Drilling Co., Inc.(MDI) based in
Oil City, LA and its wholly owned subsidiaries for $4.5 million. MDI owns
100% of the working interest in 43 leases, with over 400 oil wells. In
addition to the oil and gas leases MDI also owns 3 fully equipped drilling
rigs and transport equipment which are locked in on long term drilling
contracts. MDI in 1997 had gross revenues in excess of $3 million, generating
approximately $1.2 million in profit.
MDI's day to day operations are managed by Mr. Charles McCormick,
President, and Mr. Danny McCormick, Vice President, who have a combined
industry experience of over 30 years. Furthermore, in accordance with the
letter of intent, Mr. Charles and Danny McCormick will enter into
non-compete employment contracts with CAYC having a 3-year term.
Additionally, MDI will have representation on the Board of CAYC.
Mr. Ken Liebscher, CEO of CAYC believes that "The proposed acquisition of
MDI, its drilling rigs, oil and gas reserves and its subsidiaries will create
for CAYC a more integrated synergistic energy company possessing the internal
ability to drill, test and complete our own wells." Mr. Liebscher went on to
state, "The addition of Mr. Charles and Danny McCormick further enhance the
already strong management team of CAYC."
On February 3, 1998, CAYC announced the acquisition of all the assets of
Great Plains, Inc. (GPI) for $6 million. GPI's $6 million in assets consists
of 1,800 oil wells, production equipment, rolling stock, no debt and
un-discounted future revenue potential of $526.5 million at $15 current oil
prices.
In related news on February 25, 1998, CAYC announced it entered into an
agreement with publicly held Oilex, Inc. (OTC Bulletin Board: OLEX) for the
issuance of a $2 million convertible debenture, convertible into OLEX shares
at $2 per share. OLEX has already received $250,000 of the funding with the
balance being provided as OLEX's cash flow needs are presented to CAYC. CAYC
already owns a minority interest in OLEX and announced that it is accumulating
additional shares in the open market place. The Boards of CAYC and OLEX are
discussing further opportunities that should benefit both companies and their
shareholders in the immediate future.
CAYC is in the business of acquiring energy companies and assets, both
domestic and international, and developing them to full potential.
This news release includes forward-looking statements that involve risks
and uncertainties. The forward-looking statements in this release are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially due to a variety of
factors, including without limitation the company's ability to produce and
market products and/or services and other risks detailed from time to time in
the company's reports filed with the Securities and Exchange Commission.
SOURCE Caye Chapel, Inc.
/CONTACT: Allen Jones of C. Jones & Company, 303-470-8783, for Caye
Chapel, Inc./
/Web site: oilex.com
(CAYC OLEX) |
