Oilex enters into stock exchange agreement with Geronimo Holding
HOUSTON--(BUSINESS WIRE)--March 6, 1997--Oilex Inc. (OTC - NASDAQ BBS - OLEX) announced today it has entered into a stock exchange agreement with privately owned GERONIMO HOLDING CORP. (GERONIMO) of Midland, Texas.
The agreement calls for among other things a cash payment of $15,300,000 plus 15,000,000 shares of the common stock of OLEX to GERONIMO.
OLEX will acquire approximately 655 oil and gas wells; 240,000 acres of gross acreage leases; estimated oil reserves of 500,000,000 barrels; estimated gas reserves of 4.5 Trillion Cubic Feet; $16,000,000 in estimated 1997 positive cash flow; situated on 302 leases in 13 states.
In the agreement OLEX has entered into a management contract with XERIC OIL AND GAS CORPORATION (XERIC), Midland, Texas, whose President, Randall C. Capps, a member of the Board of Directors of OLEX, will manage and operate all present and future oil/gas wells and leases.
The President of OLEX, Oliver H. Timmins, III, stated; "The management contract signed with XERIC, which has a full staff of Geologist, Engineers, administrative and support staff, lifts a huge burden off the day to day operations of OLEX which now owns with this acquisition over 1200 wells."
The acquisition is contingent upon OLEX finalizing arrangements in progress to fund the $15.3 million as well as arranging additional funding for other acquisitions, in-field drilling and recompletion projects.
OLEX is in the business of acquiring and developing oil and gas properties.
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Well, this changes the whole picture I guess... Can a NASD listing be far behind? Have they started the paperwork yet? Anybody called them recently? Any thoughts? -T
CONTACT: Howard Bronson & Co., New York
Tom Goolsby, 212/867-6160 |
