CALGARY, Feb. 2 /CNW/ - Cubacan Exploration Inc. (''Cubacan'') is pleased
to announce the signing of an Engagement Letter Agreement with Dominick &
Dominick Securities Inc. of Toronto which, if fully subscribed, would raise up
to $8,500,000 through a Prospectus Rights Offering. Management intends to
participate in the offering and anticipates the preliminary prospectus to be
filed later this month.
The prospectus proceeds will be used to finance the Company's ongoing
capital requirements for its exploration and development activities throughout
1999. EXPLORATION ACTIVITY UPDATE Block 22
Cubacan currently holds a 15% working interest through Macdonald Oil
Exploration Ltd. (''MACO'' on CDN) on this block which is currently operated
by Genoil Inc. (''GNOL'' on CDN), a company controlled by Beau Canada
Exploration Ltd. Genoil recently completed an additional 100 km 2-D seismic
program which has identified a drillable prospect. It is anticipated that the
Angelito IX well will commence drilling in the second quarter of 1999 with
Genoil, Macdonald and Cubacan as participants. Block 17
La Victoria South: Cubacan is actively seeking joint venture partners to
participate in drilling of Cubacan's third target, La Victoria South No. 1,
which is scheduled for the third quarter of 1999. This prospect is a carbonate
reef play located at a depth of approximately 3,600 meters. This structure
has a 4 km(2) area of closure and a vertical closure of approximately 300
meters, as verified by an independent engineering firm.
Farola North No.1: Cubacan delayed the production testing of this well to
the third quarter of 1999 as a result of the inability to obtain financing in
this prevailing equity market. Once the funds are in place to proceed, the
Company intends to production test Farola North No. 1 and actively pursue
other drilling locations in the immediate area. Block 16
Cubacan management elected to relinquish its interest in block 16 back to
Cupet at the end of 1998. While a difficult decision, management felt in light
of continuing low commodity prices and soft equity market, that it was prudent
to direct all available capital toward the Company' short term drillable
prospects located on Block 17 and Block 22.
Cubacan is a Calgary based junior oil and gas exploration company with
interests solely in Cuba. Cubacan is listed on the Alberta Stock Exchange
(ASE) with shares trading under the ''CCX''.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein. %SEDAR: 00005256E
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For further information: Allan J. Kent, President, (403) 777-9220,
e-mail: info@cubacan.com or visit our website at www.cubacan.com |
