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Gold/Mining/Energy : Scimitar Hydrocarbons, SIY:ASE -- Ignore unavailable to you. Want to Upgrade?

To: j.oil who wrote (586)	10/6/1999 1:11:00 PM
From: Alex Harrington	Read Replies (1) \| Respond to of 864

Here's some news: Scimitar Shareholders Right Offering CALGARY, Oct. 6 /CNW/ - Scimitar Hydrocarbons Corporation (SHC) today announced that it is proceeding with a Rights Offering whereby it will issue to the holders of its outstanding Common Shares of record at the close of business on October 12, 1999, rights (Rights) to subscribe for Common Shares. One Right will be issued for every Common Share held as of the Record Date. Four (4) Rights will entitle the holder to subscribe for One (1) Common Share at a price of $0.20 per share on or before 5:00 p.m. (Calgary time) on November 10, 1999. The Rights Certificates issued will be fully transferable except in certain jurisdictions and will be divisible. The net proceeds will be used to fund capital requirements in respect of the drilling of development wells in the Corporation's Issaran oilfield project in Egypt. CIBC Mellon Trust Company has been appointed the subscription agent for the Rights Offering . United States residents will not be entitled to exercise rights and receive common shares of Scimitar. StephenAvenue Securities Inc. has agreed to manage the solicitation of the exercise of rights. Operation Update Scimitar Hydrocarbons Corporation (SHC) is also pleased to announce that in accordance with the terms of the Petroleum Service Agreement (PSA) signed with the General Petroleum Company (GPC) of Egypt, it was agreed at the Operating Committee Meeting held on August 25, 1999 to defer the proposed seismic program for the Issaran Field to a later stage. This will allow the seismic program involving US$1.2 million of capital expenditures to be undertaken at an appropriate time with respect to field development. Discussions with GPC regarding Scimitar's development drilling program for the Issaran Field was approved and up to four (4) low risk development wells will be drilled to delineate the Nukhul and Dolomite reservoirs. A formal bidding process was undertaken to select a contractor to drill the proposed wells on a turnkey contract basis. The Egyptian Chinese Drilling Company (ECDC) was selected by Scimitar and approved by GPC. ECDC's operating history includes the successful completion of a recent five (5) well program for a major oil and gas operator in Egypt. Scimitar's wells are estimated to cost approximately US$473,000 per well to drill, complete and place on production. Subject to the receipt of the required drilling approvals from the local Egyptian authorities, it is anticipated that the first well will spud in late October or early November 1999. During the months of May through August, 1999, Scimitar's production from the existing wells has averaged over 800 bopd. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN. -30- For further information: Angus A. Mackenzie, President and Chief Executive Officer or Ms. M. Dalgado, Investor Relations, Tel: 1-800-933-8855, Tel: (403) 543-0333, Fax: (403) 543-0344, scimitar.ab.ca