Taylor Rig/Skytex Brewster joint venture plans
Westrend Natural Gas Inc WRN
Shares issued 18,885,569 Aug 12 close $0.18
Wed 12 Aug 98 News Release
Mr. Mark Roberts reports
Further to the company's news release in Stockwatch dated March 19, 1998, Westrend confirms that the proposed transaction between International Rigs and Services, a Texas company, and Westrend is not proceeding as announced. However, management of Westrend is pursuing a different approach to the International Rig transaction, which was to acquire an equity interest in Skytop Brewster in order to facilitate the primary objective of a joint venture between Taylor Rig LLC and Skytop Brewster.
Skytex International, which trades on the over the counter bulletin board in the United States, acquired the Skytop Brewster interest under option from International Rig and directly acquired an additional interest in Skytop Brewster, a rig manufacturing business in Victoria, Texas, wherein it now holds a majority interest in Skytop Brewster. Westrend's key objective has been and continues to be to joint venture the operations of Taylor Rig with Skytop Brewster. The advantages of such a joint venture include the ability to access Skytop's API manufacturing facility in order to deliver API rated service and drilling rigs to its existing and potential clientele. Further, the common sales staffs of these two companies, manufacturing facilities, paint facilities, design capabilities and the combined efforts of Skytop and Taylor Rig, as joint venturers, would result in a strong competitive advantage in the international service and rig manufacturing business.
Skytex and Westrend management have been in close contact and discussions for some months now and both management teams realize the valuable synergy that this proposed joint venture would create.
Oscar Taylor and Brett Taylor currently own 27.5 per cent of the
outstanding units of Taylor Rig leaving Westrend owning the remaining 72.5 per cent which it has now finalized and paid for. Oscar and Brett Taylor have signed a letter of intent and are negotiating a final agreement whereby they will sell their units in Taylor Rig for cash and stock from Skytex International. Pursuant to a shareholder agreement between the parties, the management of Westrend has decided to allow this transaction to occur subject to, at a minimum, there being a signed joint venture agreement between Taylor Rig and Skytop Brewster.
Management of Skytex is negotiating with the board of directors of Westrend to purchase an additional interest in Taylor Rig from Westrend.
(c) Copyright 1998 Canjex Publishing Ltd.
canada-stockwatch.com
About time for some info..... |
