CORP. / Mercantile International Petroleum Inc. Chairman Steps Down
CHAIRMAN OF MERCANTILE INTERNATIONAL PETROLEUM INC. STEPS DOWN
NASSAU, Bahamas, July 31 /CNW/ - Mercantile International Petroleum Inc.
announced today that J. Arthur Bray the Chief Executive Officer and a director
of the Company, also has become its Chairman. Jeffrey Waterous, who, although
continuing as a director of the Company, has stepped down from his role as
Non-Executive Chairman to spend more time pursuing other business interests.
Robert Goods remains President of the Company and Roger Widmann and Cameron
Smith continue as independent directors.
In addition, the Company announced that, as part of its continued cost
reduction efforts, it intends to replace its Nassau head office by expanding
its office in Lima, Peru. Mercantile expects to close its Nassau office during
the fourth quarter of 1998. The Company will also reduce its Peruvian
workforce in August by 16 people. The employees who are leaving include
technical, operating and warehouse personnel and one general manager. These
staffing cuts will leave the Company with 52 employed in Peru, down from 68 in
July 1998 and 162 in November 1997.
The Company also announced that it is proceeding with two insurance
claims in excess of $4.0 million for damages and financial losses due to El
Nino flooding emanating from two separate El Nino occurrences. The six-month
period of insured losses for claim No. 1 expired on June 30, 1998 and for
claim No. 2, the six-month period expires on September 30, 1998. The Company
submitted a final report and request for payment against claim No. 1 on June
30, 1998 with such claim totaling $3.3 million. On June 2, 1998, the Company
received an advance payment of $250,000 against this claim. A further advance
payment has been requested and may be forthcoming towards the end of August.
The second claim, which to date totals in excess of $1.0 million, continues
until the end of August. The final payments for these claims are required to
be made no later than October 31, 1998 for claim No. 1 and December 31, 1998
for claim No. 2. The insurers (El Pacifico Peruano Suiza), are a consortium of
AAA rated international companies (Creditcorp Group) who are well respected in
the industry.
Mercantile is an ''exploitation'' company, with interests in Peru,
Colombia and Myanmar. The Company continues to look for international
off-shore properties where the application of leading edge technologies will
allow the Company to generate value through the commercial recovery of greater
reserves. Mercantile's common shares are listed in US dollars on The Toronto
Stock Exchange and made under the symbol MPT.U. Mercantile's debentures are
listed on the Winnipeg Stock Exchange. |
