PROPERTY ACQUISITIONS / Kintail Energy
KINTAIL ENERGY CLOSES ACQUISITION AND FINANCING
CALGARY, Aug. 5 /CNW/ -
ACQUISITION
KINTAIL ENERGY INC. has closed its previously announced acquisition of
gas properties in the Watelet area of Central Alberta. Production is
approximately five mmcf equivalent per day and the deal includes 30 sections
of undeveloped lands with an average working interest of 80%. The acquired
properties are operated by Kintail and numerous development and exploration
opportunities will be exploited.
The purchase price was $ 8 million and was paid by a combination of swap
of properties, cash and Kintail shares issued to the vendor.
Kintail expects to benefit from strong gas prices as pipelines to the
United States are expanded in the fall of 1998.
FINANCING
A private placement was closed consisting of 2,097,433 shares and
1,045,716 warrants for gross proceeds of $ 1,573,074.
The financing was done at a price of $ 0.75 per share and includes one
half warrant per share. Each whole warrant entitles the holder to acquire one
common share at a price of $ 1.00 for a period of one year. The common
shares, warrants and common shares issued on exercise of the warrants are
restricted from trading for a period of one year.
No commissions were paid on the fund raising and after expenses of the
issue, estimated at $ 5,000, net proceeds are approximately $ 1,568,000.
This was the second and final closing of the private placement financing
announced in July, 1998.
Kintail Energy Inc. is an aggressive exploration and production Company,
which trades on the Alberta Stock Exchange under the symbol 'KTE'.
The Alberta Stock Exchange has neither approved nor disapproved the
contents of this press release.
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For further information: Paul Ward McRae Read, Chairman, President and
Chief Executive Officer, (403) 269-2240, Fax: (403) 266-8893
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