SERVICE SECTOR / Corlac Oilfield Leasing Acquisition
CORLAC OILFIELD LEASING LTD. ENTERS INTO LETTERS ON
INTENT
MEDICINE HAT, ALBERTA--
CORLAC OILFIELD LEASING LTD. ("Corlac")(ASE:CKL) is pleased to
announce that it has entered into letters of intent with Energy
Leasing Ltd., as well as shareholders of Energy Leasing to
purchase the 50% of outstanding shares not currently owned by
Corlac.
Energy Leasing is a private company engaged in the business of
renting equipment to the drilling sector of the oil and gas
industry. Energy Leasing currently has offices in Whitecourt and
Grande Prairie, Alberta.
Pursuant to the letters of intent with the shareholders of Energy
Leasing, Corlac has agreed to acquire those common shares for a
purchase price of $1,000,000 to be payable by way of $350,000 in
cash, $350,000 in the form of a non-interest bearing, non-
secured, promissory note of Corlac maturing January 31, 1999 and
the balance of $300,000 by the issuance of 461,538 common shares
of Corlac with a deemed price of $.65 per share.
The completion of the Energy Leasing Acquisition is also subject
to several other conditions precedent, including Corlac Board of
Director's approval, satisfactory completion of due diligence
reviews, the entering into of formal share purchase agreements
among the parties, and the entering into of employment and non-
competition agreements with the two key personnel of Energy, Mr.
Gary Austin and Mr. Rick Johnson. Corlac has also agreed,
pursuant to the letter of intent, to issue common shares to Mr.
Austin and Mr. Johnson to be held in escrow and to be released
based on net income of Energy Leasing during the year ended
December 31, 1999.
The completion of the transaction is also subject to regulatory
approval and Corlac is required to file a formal application with
The Alberta Stock Exchange (the "ASE") within 14 calendar days of
this press release.
The Energy Leasing Acquisition is expected to strengthen Corlac's
overall rental fleet exposure in Northwestern Alberta. Corlac
expects robust activity in this gas prone area over the upcoming
winter drilling season.
Corlac is a public company whose common shares are listed and
posted for trading on The Alberta Stock Exchange. Corlac provides
financing alternatives to the oil and gas industry including
rentals, custom financing and custom processing. |
