JCP - MAJOR TRANSACTION / Celestar Exploration Ltd. Announces the
Conclusion of Major Transaction
CALGARY, ALBERTA--Celestar Exploration Ltd. ("Celestar") announced
today that the shareholders of Celestar have approved the Major
Transaction of Celestar relating to the proposed acquisition of
all of the issued and outstanding common shares of Brecon
Enterprises Ltd. ("Brecon") for a purchase price of $540,000
payable by the issuance of 2,700,000 common shares of Celestar,
having a deemed value of $0.20 per common share. This transaction
was concluded effective December 16, 1998, and as a result
thereof, Brecon has become a wholly owned subsidiary of Celestar.
As a result of the Major Transaction, Celestar has an interest in
oil and gas properties with production of 65 BOEPD in the Armada
and Robin areas of southern Alberta, with proved reserves having a
present value of $1,169,600 and 50 percent risked probable
additional reserves with a present value of $194,000 based on
constant dollar pricing discounted at 15 percent. Celestar
currently has $400,000 in cash, an available line of credit of
$400,000 and no debt.
Celestar is exploring a number of growth opportunities in Alberta.
Following the Major Transaction, Celestar has 6,512,500 issued and
outstanding common shares.
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