MERGERS-ACQUISITIONS / Loon Makes Deal for Control of Roberts Bay
Resources
ASE SYMBOL: LEY
JUNE 10, 1998
CALGARY, ALBERTA--Loon Energy Inc. (ASE:LEY) has entered into a
letter of intent with five shareholders of Roberts Bay Resources
Ltd. (ASE:RBR) to purchase 10,406,512 common shares of Roberts Bay
in exchange for 1,892,091 common shares of Loon. The Roberts Bay
common shares to be acquired by Loon represent 59.64 percent of
the issued and outstanding common shares on a fully-diluted basis
of Roberts Bay. The exchange ratio is 5.5 Roberts Bay common
shares for one Loon share. The transaction, which is subject to
formal documentation and regulatory approvals, is expected to
close prior to the end of June, 1998.
Roberts Bay is an oil and gas company with approximately 200 Mboe
of oil and gas reserves, 40 boepd of oil and gas production and
$600,000 in net working capital.
Loon is a junior oil and gas company with approximately 70 bopd of
production from a property in the Grand Forks area. Loon also
owns 10 percent BPO (5 percent APO) interest in a 14.5 section
prospect at Strachan which was drilled during the first half of
1998 and operates a gas exploration prospect at Carvel (33.34
percent) which will be drilled this summer. Loon announced on
June 9 the closing of a special warrant financing for gross
proceeds of $593,125. |
