PROPERTY ACQUISITION / Moxie Petroleum Enters Into Purchase and Sale
Agreement
ASE SYMBOL: MOX
MAY 26, 1998
CALGARY, ALBERTA--Moxie Petroleum Ltd. ("Moxie") has entered into
a Purchase and Sale Agreement with a senior Canadian oil and gas
producer to purchase certain oil and gas assets in Moxie's core
area of southern Alberta.
The acquisition includes gross over-riding royalty interests and
working interest up to 100 percent in over 67,000 gross acres of P
& NG leases located in Townships 1 - 20, Ranges 1 - 30W4M. Based
on an April 1, 1998 reserve report prepared by Ryder Scott
Company, Moxie is acquiring proven reserves of 193,000 barrels of
oil equivalent, 88 percent of which are gas reserves. Current
production is approximately 30 barrels of oil equivalent per day.
Closing is expected to occur in late June, subject to standard
closing conditions.
Since closing its $6.4 million initial public offering in December
1997, Moxie has participated in the drilling of 8 wells, resulting
in 6 potential gas wells and one oil well at an average working
interest of 81 percent.
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