Heres a more complete release. Notice the statement of "on terms more favorable for the long-term interests ofChaparral." And the contract for transportation and sale of oil.
HOUSTON--(BUSINESS WIRE)--March 10, 1998--Chaparral Resources
Inc. (NASDAQ:CHAR) announced today that the financing agreement
signed on Nov. 21, 1997 with Exeter Finance Group, pursuant to which
Exeter purchased $5,000,000 Series A of preferred stock, has been
terminated by mutual agreement. This termination releases Exeter from
further payments to Chaparral. The Company is completing a private
placement through Allen & Company for 1,250,000 shares of common stock
for $2,500,000. Allen & Company, an 18 percent shareholder of
Chaparral, has also committed to raise additional financing for the
development of the Kurakuduk Field on terms that the board of
directors considers more favorable for the long-term interests ofChaparral.
Chaparral is aggressively moving forward to fully develop the
Phase One work over program in the Karakuduk Field. The Company has
re-entered wells No. 21, No. 7 and No. 10. These wells are being
reperforated by Schlumberger to bring the production levels up to
their full potential. The Company is also finalizing negotiations for
a drilling rig for the Phase Two 10 well drilling program expected to
commence late in the second quarter of 1998.
The Company signed a contract with MunaiImpex, the marketing
subsidiary of KazakhOil, the Kazakhstan National Petroleum Company,
for the transportation and sale of this year's oil production into an
export market.
The Company also announced that Michael B. Young has joined the
Company as the treasurer and controller. Mr. Young spent over six
years with Arthur Andersen LLP, as a tax manager in their Houston oil
and gas practice, focusing primarily on independent exploration and
production companies with international operations. Ms. Amanda Johnson
has also been elected assistant secretary of Chaparral.
Chaparral Resources Inc. is an international oil and gas
exploration and production company. The Company is a participant in
the development of the Karakuduk oil field in western Kazakhstan. The
Company owns a 50 percent beneficial ownership interest in
Karakuduk-Munai Inc. ("KKM") the operator of the field. The majority
of the other 50% ownership is held by KazakhOil, the Kazakhstan
National Petroleum Company.
Information Regarding Forward Looking Statements: Except for
historical information contained herein, some of the statements in
this Press Release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward looking statements involve
known and unknown risks and uncertainties which may cause the
Company's actual results in future periods to differ materially from
forecasted results. These risks and uncertainties include, among other
things, volatility of oil prices, product demand, market competition,
risks inherent in the Company's international operations, imprecision
of reserve estimates and the Company's ability to replace and expand
oil and gas reserves. These and other risks are described in the
Company's Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission. |
