~From The Company~
November 25, 1998
TSE:TKE
12g3-2(b):82-3297
NEWS RELEASE
TUSK Announce Equity Financing
TUSK Energy Inc. (TKE:TSE) is pleased to announce that it has entered into an
agency agreement with HSBC James Capel Canada Inc. with respect to an offering
of $3 to $5 million of special warrants. A maximum of $1.5 million of the
offering will be flow-through special warrants. Each special warrant will
entitle the holder, upon exercise, to acquire one TUSK common share, or one TUSK
flow-through common share, from treasury.
The special warrants are being offered by way of an offering memorandum and will
be priced immediately prior to closing. Closing of the flow-through special
warrants is anticipated no later than December 31, 1998.
Concurrently with this issue, TUSK intends to issue up to an additional $1
million in flow-through common shares on a private placement basis to officers,
directors and existing shareholders. The offerings are subject to regulatory
approval.
Proceeds from these offerings will be used primarily to finance the previously
announced acquisition of additional working interests in the Meekwap D-2A Unit
and to finance ongoing exploration and development expenditures.
Capital expenditure plans during the coming 6 months call for total expenditures
of approximately $7 million. Funds will be expended to finance the previously
announced acquisition at Meekwap, drill up to 7 wells, tie-in gaswells at
Strachan and Culp and for other exploration and development expenses.
Contact:
Norman W. Holton, President
TUSK Energy Inc.
1950, 700-4th Avenue S.W.
Calgary, Alberta
T2P 3J4
Bus: (403) 264-8875
Fax: (403) 263-4247
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein. |
