CORP. / Cascade Oil & Gas Changes Name To Grey Wolf Exploration
CASCADE OIL & GAS LTD. - NAME CHANGE / PUBLIC OFFERING
Date: 6/15/98 9:06:52 AM
Stock Symbol: COL
At the Annual General and Special Meeting of Shareholders held on June 11,
1998, the shareholders of Cascade Oil & Gas Ltd. ("Cascade") approved
changing the name of the corporation to Grey Wolf Exploration Inc. ("Grey
Wolf"). The name change became effective June 11, 1998. Trading of the shares
of the corporation on the Alberta Stock Exchange under the corporation's new
name is expected to begin by June 22, 1998 under the symbol "GWX".
The change of the Corporation's name reflects Grey Wolf's exploration focus
in northern Canada. Grey Wolf will continue to be engaged in the acquisition,
exploration for and development of oil and natural gas properties in Western
Canada and the Northwest Territories.
Public Offering
Grey Wolf announces that a preliminary prospectus relating to the public
offering of Common Shares and Warrants and Flow-through Common Shares of the
Corporation has been filed with the securities commissions in the provinces
of Alberta and British Columbia. The offering is subject to a maximum of
$16,000,000 and a minimum of $12,000,000 and includes a Flow-through Common
Share component which will be limited to $5,000,000 if the maximum offering
is sold and $3,000,000 if the minimum offering is sold. Jennings Capital Inc.
of Calgary, Alberta has agreed to act as agent of the Corporation to offer
these securities for sale on a best efforts basis at a price to be announced
upon filing of the final prospectus.
Grey Wolf's principal shareholder, Abraxas Petroleum Corporation, has agreed
to subscribe for 50% of the offering through the purchase of Common Shares
and Warrants.
The net proceeds from the offering will be used to acquire petroleum and
natural gas interests. These interests were acquired by Grey Wolf's managed
affiliate, Canadian Abraxas Petroleum Limited, in October 1997 from Pacalta
Resources Ltd. Grey Wolf initially participated as to an 8.27% share in this
acquisition and has managed the combined interests since October 1997. The
purchase price is equal to the original cost adjusted for transactions that
occurred during the interim period. The adjusted purchase price will be
approximately $21,600,000 and closing of the transaction will occur shortly
after completion of the offering. The balance of the purchase price will be
funded by additional bank borrowings.
Reserves to be acquired by Grey Wolf as evaluated by McDaniel & Associates as
of January 1, 1998, are as follows:
Probable
Proved (@ 50%)
------ --------
Oil and Natural Gas Liquids (mbbls) 195.5 0
Natural Gas (mmcf) 27,029 4,419
The assets also include approximately 55,000 net acres of undeveloped land.
Average daily production from these interests for the three months ended
March 31, 1998 was 10.2 mmcfpd of natural gas and 183 barrels per day of oil
and natural gas liquids.
This transaction will have a significant impact on Grey Wolf's future
operating results, almost tripling the size of the Corporation. By
comparison, existing reserves for Grey Wolf at January 1, 1998 were:
Probable
Proved (@ 50%)
------ --------
Oil and Natural Gas Liquids (mbbls) 339.9 15.4
Natural Gas (mmcf) 11,230 1,177
Average daily production from Grey Wolf's existing properties for the three
months ended March 31, 1998 was 4.8 mmcfpd of natural gas and 126 barrels per
day of oil and natural gas liquids.
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