People, note some things about this news release:
>>Caye Chapel, Inc. Completes Major Acquisition
NIXON, Texas, Jan. 13 /PRNewswire/ -- Caye Chapel, Inc. (OTC Bulletin Board: (CAYC) announced today that it had completed the acquisition of the assets of Trend Tool, Inc. of Houston, Texas. Trend Tool has been in the manufacturing and distributing of drilling bits used in the mining and oil and gas industries. The acquisition includes all of the raw material, jigs and fixtures, assembly equipment, all patents and patent assignments,any and all finished products, all engineering prints and drawings, the rights to the name and trademarks and the customer base that has been established.
Caye Chapel had previously announced that it had entered into an agreement with the inventor of the rock bit for additional patents and manufacturing rights and the inventor of the bit, Mr. Dennis Durosz will become part of the Caye Chapel team and will assist in the
marketing, redesigning and manufacturing of the bits.
Now that the acquisition has been completed, management will be finalizing the negotiations regarding the marketing rights for the rock bits to the mining industry with a major supplier of mining rock drilling bits. Contracts and purchase orders should be completed shortly. Our projections for 1999 are for sales to be in the $5,000,000.00 range with net profits of approximately 20%.
Management is also continuing negotiations with a potential funding source to provide funding to begin a pilot horizontal drilling program on Caye Chapel's leases. The funders are in the final stages of completing their due diligence and it appears that a contract is eminent. Caye Chapel currently owns approximately 1,800 shallow oil wells in south Texas and about 40,000 gross acres of oil and gas mineral leases. In the past, properties like those owned by Caye Chapel were produced from a large number of shallow vertical wells over long periods of time. Some of the wells which Caye Chapel owns were drilled in the 1930's and are still capable of producing. However, in recent years several companies have begun to experiment by drilling horizontal wells and particularly a technology referred to as "underbalanced horizontal drilling".
This process is specifically designed for fields like Caye Chapel's where there is no longer any specific gas drive in the field. After the normal period of trial and error, the technology has been refined to the point where underbalanced horizontal drilling is common place and relatively simple to do. The results have been incredible. Texaco, in a recent article in the "American Oil and Gas Reporter" said that they had applied horizontal re-entry technology in their Permian and Midland Basin wells in the Bryant G Field. By
using horizontal drilling, as well as other modern technology, they were able to produce twice as much oil and gas in the last 3 years than they had produced in the previous 30 years of the fields life.
Caye Chapel's auditors, Merdinger, Fruchter, Rosen & Corso of New York, New York, are currently finalizing Caye Chapel's audit for the year ending December 31, 1998. When the audit is complete, management expects brokers and dealers trading in the common stock of the company to be relieved of the requirements of the "Penny Stock" rules.
Management intends for Company to be "Fully Reporting" as per new regulations.
This news release includes forward-looking statements that involve risks and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities litigation reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the company's ability to produce and market products and/or services and other risks detailed from time to time in the company's reports filed with the Securities and Exchange
Commission.
SOURCE Caye Chapel, Inc.
CO: Caye Chapel, Inc.; Trend Tool, Inc.
ST: Texas
IN: OIL MAC
SU: TNM
01/13/99 08:30 EST prnewswire.com <<
THIS IS A CLASSIC ALLEN J. BURDITT III NEWS RELEASE!! Why?
1) Everything is in the future: Earnings, fully-reporting, audit, on and on. This same tactic was used by Oilex, run by Allen Burditt to sucker people into buying the stock. Meanwhile, Burditt was filing for Reg-D debentures which gutted the stock, and selling his personal stock via Canada.
2) Notice that there are no quotes from management. Normally news of this importance will have a happy CEO gushing about how great things are gonna be. Where the CEO, and why won't he speak? Liability!
3)No contact point: Who do we call for further information? There's nobody home! Burditt never wants people calling him.
In my opinion, this stock is a scam, and anybody investing in it had best be wary, and not looking for any long term gain. When Allen J. Burditt, III is running the show, the only long-term gain goes to HIM!
Richard Williams |
