MERGERS - ACQUISITIONS / Draig Energy - Update To Shareholders
DRAIG ENERGY LTD.
ASE SYMBOL: DRA
JULY 6, 1998
CALGARY, ALBERTA--On July 2, 1998, management of Draig Energy Ltd.
("Draig") met with the special committee of the board of directors
and management of Kensington Energy Ltd. ("Kensington") to address
certain concerns expressed by the Kensington's board of directors
with respect to the offer by Draig to purchase all of the
outstanding Class A and Class B shares of Kensington.
As a result of such meeting and the press release issued by
Kensington on such date, Draig wishes to provide the following
information directly to the Shareholders of Kensington:
- The offer by Draig represents a significant premium of 37
percent for the Class A Shares and 87 percent of the Class B
shares based on the ten day weighed average trading prices prior
to the offer.
- Draig believes that Kensington has been unable to attract any
other bidder for the shares of Kensington.
- As at July 1, 1998, Draig's production was approximately 1,200
boe per day. Management of Draig believe it will meet or exceed
its projected production rate at year end of 1,400 boe per day.
- Draig believes that the combination of the two companies will
result in a more liquid market for both companies. Draig notes
that according to the director's circular of Kensington, the
President of Kensington and Kensington's issuer bid was
responsible for approximately 55 percent of all Class A Shares
traded in May 1998.
Draig has no current plans to extend its offer beyond the expiry
time of 4:30 p.m. Calgary time, July 7, 1998. Draig urges the
Kensington Shareholders to fully consider the above matters and
tender their shares to the offer.
Kerm's note: This release is chained to related Kensington
release. (click on message number opposite Herb's name) |
