Wednesday June 24, 5:26 pm Eastern Time
Company Press Release
CNH Holdings Co. Announces Closing of Southport Environmental and Development Inc. Acquisition
KILGORE, Texas--(BUSINESS WIRE)--June 24, 1998--CNH Holdings Co. (OTC BB: CNHH - news) today announced the closing of the Southport Environmental and Development Inc. acquisition.
Southport is in the oil production and oil waste recovery industry with three subsidiaries, NORM Services Group L.L.C. (''NSG''), NSG Rentals and Larry V. Tate Operating Inc. Currently Southport has 67% interest in 50 oil-producing wells in the East Texas field which are producing approximately 4,200 barrels a month, of which Larry V. Tate Operating in Kilgore, Texas, a wholly owned subsidiary of Southport, is the operator.
Southport currently owns 75% of NSG and is presently in negotiations for the remaining 25% ownership. NSG is comprised of experts in the fields of NORM surveying, site characterizations and evaluations, waste volume estimates, equipment decontamination, site remediation, radiation protection, personnel training (NORM work), regulatory compliance, also waste packaging, waste transporting and waste disposal. Currently NSG operates one disposal well and one land farm which services four off-shore drilling rigs in the Gulf of Mexico. Additionally, NSG is in negotiations with other clients in the Gulf of Mexico for total waste disposal. Customers of NSG include Texas Meridian, Mitchell Energy and Vintage Petroleum. NSG also has a joint venture with Ron's Inc., a manufacturer of ''Spiral Flow Cylindrical Processors,'' a skid mounted self-contained unit that separates oil and contaminants from top soil. This remediation/recovery process is used to clean up contaminated areas around manufacturing plants, processing plants and oil production sites. Recently, NSG has successfully completed a pilot test program for cleaning some low-level radioactive material on a site for a major oil company in Freer, Texas. NSG has the exclusive rights to the equipment for the entire United States. Customers for the clean-up process equipment include: The US Government EPA, Texas Railroad Commission, and all major oil companies. In addition, NSG is currently negotiating with the owner of a salt dome to be used for disposal of additional on-shore oil site and off-shore drilling rig waste. Southport currently owns 75% of NSG Rentals, which is in the business of renting skid mounted oil field equipment to producers and drillers in both on-shore sites and off-shore rigs plus leases equipment and temporary personnel on an as-needed basis for short- and long-term assignments.
CNH Holdings paid 6 million shares of restricted stock and 200,000 shares of its Preferred Series ''A'' stock for this acquisition. The Preferred Series ''A'' stock is not convertible and has no mandatory redemption by the company.
The new board of directors:
Larry V. Tate, chairman of the board and CEO, who, after having
25 years in the banking business, has owned and operated various
oil and gas properties and associated investments for the past
23 years.
Gerald W. Pybas, COO and president, is a geologist who has been
involved with various phases of the oil and gas industry since
1964.
H. Paul Estey, CEO of NORM Services Group, L.L.C. is a
specialist in pollution control and clean-up, and is licensed
for handling radioactive materials.
E. Robert Barbee, director, is the proprietor of an oil field
supply store.
Terry McFarland, director, who is the proprietor of an oil field
construction business.
CNH Holdings has sold their interest in DRC to private investors in exchange for 2.5 million of its common stock being retired to the treasury and $11,000 cash CNH Holdings had invested.
Safe Harbor Act Disclaimer: This release may contain forward-looking statements that involve risks and uncertainties, including, without limitation, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes, the company's dependence upon financing, third-party suppliers and intellectual property rights, and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus.
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Contact:
CNH Holdings Co.
Gerald Pybas, 903/984-6425 |
