Canadian 88 now owns %50+ of Prize Energy. Clearly EEE is setting PZI up for the bug time.
PRIZE ENERGY INC. ACQUIRES SASKATCHEWAN OIL & GAS ASSETS
VALUED AT $3.9 MILLION
CALGARY, Jan. 23 /CNW/ - Prize Energy Inc. (the
Corporation'') is pleased to announce that it has entered into
an agreement with Odin Resources Inc. (Odin'') to acquire all
of Odin's oil and gas properties situated in the Province of
Saskatchewan.
The purchase involves approximately 26,000 acres of
undeveloped properties in West Central and Southeastern
Saskatchewan in which the Corporation will have a 98% average
working interest. Based on an independent engineering
evaluation, reserves attributable to the properties are
estimated to be 850 thousand barrels of oil and 5.3 billion
cubic feet of natural gas.
The purchase price, based on independent engineers
evaluation and a 20% discount factor, is $3,981,200 which will
be paid by the issuance of 7,962,400 common shares of the
Corporation to Odin, a wholly owned subsidiary of Canadian 88,
who after the transaction will effectively increase its'
position in Prize from 39.0% to 50.7%.
The Corporation has identified numerous potential drilling
locations on the acquired lands and plans to embark on an
aggressive drilling program.
The Corporation has a 10% carried working interest in
Canadian 88 Energy Corp.'s recent large foothills natural gas
discovery at Waterton in South West Alberta.
The Corporation recently participated (10%) in the
acquisition of a 256 hectacre parcel of land in the immediate
vicinity of the Waterton discovery. This acquisition resulted
in the establishment of a new record price for Province of
Alberta Land Sales of $12,695.31/hectare.
Further drilling upon the Waterton discovery is expected
to commence within the next 30 days.
Prize Energy Inc. is a public natural resource corporation
headquartered in Calgary which trades on the Alberta Stock
Exchange under the symbol PZI''.
The Alberta Stock Exchange has neither approved or
disapproved the information contained herein.
/For further information: David R. DiPaolo, President,
Prize Energy Inc., (403) 294-1411/
Copyright 1997, Reuters News Service |
