Press Release out on Caye Chapel...Can anyone read between the lines or all of you idiots...oh, well...tough shit...
Wednesday March 4, 10:04 am Eastern Time
Company Press Release
SOURCE: Caye Chapel, Inc.
Caye Chapel, Inc. Signs Letter of Intent to Acquire Drilling Company
LAS VEGAS, Nev., March 4 /PRNewswire/ -- Caye Chapel, Inc. (OTC Bulletin Board: CAYC - news) 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 - news) 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. |
