NEW RELEASE - Financing convertible at $2 US/share
U.S. OIL AND GAS RESOURCES INC. - Signs $ 5,000,000 US Financing [187]
Canadian Market News from Market News Publishing, Monday, April 06, 1998 at 12:13
OWEN RICHMAN, PRESIDENT of U.S. Oil and Gas Resources Inc. reports the
Company has signed a commitment letter with VenGua Capital Markets, Ltd.,
to arrange sufficient equity and debt financing for the recently announced
HS Resources, lac. venture dated March 31, 1998. The Company will drill a
minimum of 30 wells this year in tins project. The project is a development
based on the 6 exploration gas wells currently producing from the targeted
formation. The project spans 22 sections with at least 1 deep well
currently on each section, providing the geology necessary to confirm the
area is underlain by the coal seams which will be the target of the
Company's drilling.
The financing anticipates institutional equity in the amount of
approximately $ 3,000,000 US in the form of a convertible debenture
(convertible at a price of not less than $ 2.00 to $ 2.25 US ) bearing
interest at 9% per annum.
There will also be available an amount of$ 2,000,000 US for debt
financing. There will be a finders fee of 10% of the amount funded plus
brokers warrants to purchase 10% of the amount funded at 120% of the bid
price at the time the finding is executed.
TEL: (604) 685-2111 OWEN RICHMAN, PRESIDENT
TEL: (888) 663-0088
FAX: (604) 688-2925
TEL: (604) 273-1987 Head Office
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