WESTREND NATURAL GAS, INC.
9311 San Pedro, Suite 1130
San Antonio, Texas 78216
("Westrend")
1-210-308-7360
For Investor Relations
Contact: Roger Fullerton Symbol: WRN.V
612-929-7243 U.S. Pink Sheets: WTNG/F
August 12, 1998
PRESS RELEASE
Further to our press release of March 18, 1998, Westrend confirms that
the proposed transaction between International Rigs and Services, a
Texas corporation, and Westrend is not proceeding as announced. However,
the 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, a company that has its shares quoted for trading
on the over the counter bulletin board in the United States with the
trading symbol of SKTX, acquired the Skytop Brewster interest under
option from International Rig and directly acquired an additional
interest in Skytop Brewster, a rig manufacturing business located 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 are important and extremely
beneficial, in management's opinion, to the ongoing business and growth
of Taylor Rig. These advantages 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 corporations, manufacturing facilities,
paint facilities, design capabilities and the combined effort enables
Skytop and Taylor Rig, as joint venturers, would result in the parties
enjoying a strong competitive advantage in the international service and
rig manufacturing business.
Skytex management 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% of the outstanding
units of Taylor Rig leaving Westrend owning the remaining 72.5% which it
has now finalized and paid for. Oscar and Brett Taylor have signed a
letter of intent and are currently 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. The terms and
conditions of this joint venture will be announced as soon as they are
finalized.
Further, the management of Skytex is currently negotiating with the
Board of Directors of Westrend to purchase an additional interest in
Taylor Rig from Westrend. These negotiations have been ongoing.
Westrend's management are excited about this transaction and its
potential and will release additional information as it is finalized.
Management are also pleased to confirm that the audited financial
statements for the Company have been completed, and the auditors and
transfer agent are in the process of completing regulatory filings.
Management also expect that the first quarter financials will be
completed by the end of this week.
On behalf of the Board of
WESTREND NATURAL GAS, INC.
Per: "Mark Roberts"
Mark Roberts, President and Director
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENTS OF THIS
PRESS RELEASE. |
