Closing date of Imperial Venture acquisition extended
TKO Resources Inc TK
Shares issued 21,543,200 Jun 4 close $0.16
Thu 4 Jun 98 News Release
Mr. Bob Burton reports
An agreement has been reached between TK and Imperial Venture Corp to extend the closing date for the acquisition of IVC by TK. The May 31, 1998 closing date has been extended to Aug. 15, 1998 to allow for the completion of a financing in TK.
Under the terms of the original agreement, TK will acquire all of the outstanding shares of IVC in a three for one share swap. To accomplish this, TK will issue 19,761,000 shares for the 6,587,000 outstanding shares of IVC. In addition, TK will issue options and warrants to replace those existing in IVC at 18 cents and 30 cents respectively.
IVS is a privately held oil and gas exploration company with petroleum exploration rights (100 per cent) to two parcels of land in Western Newfoundland. These parcels are the onshore Harry's River block of 84,000 acres and the offshore Bonne Bay block of 399,999 acres. Companies such as Hunt, Mobil and PanCanadian are active in the immediate area. The petroleum potential of Western Newfoundland has long been recognized from widespread oil and gas seeps, shallow oil production and geological similarity to major producing fields in Texas and Oklahoma along the trend of the Appalachians. The current exploration play in the area gained
prominence with the geological success of the Hunt/PanCanadian Port au Port No. 1 well which tested free flowing hydrocarbons. Information on this well was released in August 1997 and is encouraging in its implication for commercial success in the area. In brief, the well demonstrated the presence of pooled hydrocarbons in reservoirs with high deliverability. Tests produced high quality crude at combined rates of 3,250 barrels per
day. On IVC's onshore Harry's River block, preliminary exploration analysis has identified several prospect leads in the size range of 50 to 100 million barrels of oil equivalent recoverable. This analysis is based on regional geology, reconnaissance seismic and analogies to known areas. The offshore Bonne Bay block is covered by an extensive 2D seismic grid, the interpretation of which by IVC has identified four prospects ranging in size from 100 million to 500 million boe. IVC's offshore acreage is directly on strike with the Hunt Port au Port No. 1 discovery. This acquisition provides TK access to IVC's outstanding executive group. Dr. George S. Langdon, who is currently president and exploration manager of IVC, as well as a member of the IVC board, will join the TK board
immediately on completion of the transaction. Dr. Langdon is a petroleum exploration consultant with experience in Newfoundland, Western Canada and the Middle East. He formerly worked with Hudson Bay Oil & Gas and Aramco.
Other IVC board members will remain fully involved and will work with TK to maximize shareholder value. They are:
Steven M. Millan is the chairman and CEO of IVC. He is a former vice-president of frontier and international exploration for Petro Canada and former executive director of the Newfoundland Petroleum Directorate. Mr. Millan recently completed his role as president of the Newfoundland and Labrador Alliance of Technical Industries and has served on numerous industry, governmental and professional boards and committees.
Dr. E.W. (Ted) Best is a principal of The Foster Group, business and economic consultants in Calgary. He is a former president of BP Canada, a former board member of Fishery Products International and numerous oil industry, professional and government bodies.
Jack A. Bolter is the former president and CEO of Pointer Exploration which has recently merged with Pan Atlas Corp. Prior to the $20-million merger, Pointer was a publicly traded junior company with interests in the Western Basin and Western Newfoundland. Mr. Bolter is a petroleum geologist who was directly responsible for the success of Pointer.
This transaction represents a strategic move on the part of TK to improve its position in the oil patch and to explore a world class opportunity on the East Coast of Canada.
A total of 600,000 options at 15 cents for two years has been granted.
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