SERVICE SECTOR / Destiny Resource Services announces Acquisition
DESTINY RESOURCE SERVICES CORP. (ASE: DSC) today announced that it has
entered into a letter of intent to acquire all of the issued and outstanding
shares of Battle River Holdings Inc. ("Battle River") of Manning, Alberta,
for total consideration of $8.0 million comprised of cash and common shares
of Destiny Resource Services Corp. ("Destiny"). The letter of intent provides
for an effective date of January 6, 1998 and includes provision for
employment agreements for the existing management of Battle River.
Battle River is a privately held, oilfield service company, providing year
round oilfield construction and strategic base camp accommodations in the gas
prone Chinchaga and Hamburg regions of N.W. Alberta and N.E. British
Columbia. Based on unaudited financial information supplied by Battle River
for the year ending January 5, 1998, revenue was approximately $11.0 million,
with after tax net income of approximately $1.6 million adjusted for
normalized management compensation and corporate income taxes.
Adrian Erickson, President and CEO of Destiny stated:
"The Battle River acquisition will significantly enhance Destiny's already
strong position in providing essential front end services to the oil and gas
industry, with continuing emphasis on natural gas. This acquisition
compliments current services provided by Destiny, particularly it's seismic
line clearing operations, which utilizes similar equipment to Battle River,
while at the same time enabling Destiny to mitigate the effect of the
seasonality of the geophysical business in Canada."
The transaction is subject to certain conditions, including all regulatory
approvals and the completion of satisfactory due diligence by Destiny. The
closing date has been set for May 31, 1998.
Destiny Resource Services Corp. is a Calgary based oilfield service company
providing specialized front end services for exploration, production and
seismic acquisition companies in selected markets world wide. Destiny, with
operations in North America, South America, the Middle East / Africa and
South East Asia, services a customer base of some of the largest integrated
Oil & Gas and Geophysical companies in the world.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
-30-
1900, 801 - 6th Avenue S.W., Calgary, Alberta, Canada T2P 3W2
Telephone: (403) 237-6437 Fax: (403) 233-8714 E-mall: destinyr@internode.net
For further information contact:
Mr. Adrian Erickson or Mr. John Newman
Chief Executive Officer Chief Financial Officer
Destiny Resource Services Corp. Destiny Resource Services Corp.
Ph.: (403) 237-6437 Ph.: (403) 237-6437
Fax: (403) 233-8714 Fax: (403) 233-8714
e-mail: jnewman@destiny-resources.com |
