HERE IT IS...
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FOR IMMEDIATE RELEASE Contact: Bruce Pollock
Jnvestor Relations
(281)216-8726
ARxA INTERNATIONAL ENERGY, INC. ANNOUNCES MAJOR
ACQUISITION
HOUSTON, TX~May 20, 1998 ARXA International Energy, Inc.
(NASD:OTC--ARXA) announced today that it has entered into a binding letter of
intent to acquire for stock and cash certain producing assets of OPMI Operating
Company, Inc. and Todd C. Harwell individually. All of the production and prospects
being acquired are in the Texas and Louisiana state waters and the Gulf Coast region.
ARXA will develop and operate the properties in conjunction with OPMI and Mr.
Harwell.
Craig Ford, President and CEO of ARXA, stated that "the production being acquired
will double both the asset base and cash flow of the company". Mr. Ford went on to
explain that "by the terms of the agreement with OPMI and Mr. Harwell, ARXA will
provide capital for numerous reduced-risk exploitation and development opportunities
with the potential for adding significant additional value to the company. The OPMI
acquisition and exploitation agreement will serve as a blue print for deals in the
immediate future to rapidly grow the producing reserve and cash flow base of the
company consistent with our short term corporate growth strategy."
In addition to the acquisition announced today, ARXA also announced the opening of
discussions with Reserve Guaranty Corporation and Omega Fuels for new production
acquisitions and development opportunities under similar terms and conditions as the
OPMI
agreement.
The private Securities Litigation Reform Act of 1995 provides a '~safe harbor" for
forward looking statements. Certain information included in this press release (as well as
information included in oral statements or other written statements made or to be made
by ARXA) contains statements that are forward-looking, such as
statements relating to the future anticipated direction of the energy industry, plans for
future expansion, various business development activities, planned capital expenditures,
future funding sources, anticipated sales growth and potential contracts. Such
forward-looking information involves important risks and uncertainties that could
significantly affect anticipated results in the fi~ture, and, accordingly, such result may
differ irorn those expressed in any forward-looking statements made by or on behalf of
ARXA. These risks and uncertainties include, but are not limited to, those relating to
development and expansion activities, dependence on existing raanagernent, financing
activities, domestic and global economic conditions, changes in federal or state tax laws,
and market competition factors. |
