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Gold/Mining/Energy : Solana Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: Taff who wrote (115)	10/12/1999 11:55:00 AM
From: Taff	Read Replies (1) \| Respond to of 1747

New Energy West appoints president; San Joaquin acquisition New Energy West Corp NEC Shares issued 11,860,429 Oct 8 close $0.05 Tue 12 Oct 99 News Release Mr. Matthew Heysel reports Matthew Heysel, PEng, has been appointed the president of New Energy and has agreed to join the board of directors of New Energy. Mr. Heysel is a petroleum engineer with over 18 years of domestic and international oil and gas experience. New Energy has entered into an arm's-length letter of intent with Monterey Resources Inc. and the principal shareholders of Monterey, pursuant to which New Energy has agreed to acquire all of the issued and outstanding securities of Monterey for $300,000 to be payable by the issuance of three million common shares of New Energy and three million share purchase warrants of New Energy. Each warrant will entitle the holder to acquire one common share of New Energy at a price of 10 cents per share for a period of one year. Monterey is a private company incorporated under the laws of Alberta that owns a 12.5-per-cent working interest in the Solana California gas exploration syndicate. The syndicate is managed by Solana Petroleum California LLC, a subsidiary of Solana Petroleum Corp. of Calgary, Alta. The syndicate is being formed to acquire, explore and develop oil and gas prospects in the San Joaquin and Sacramento basin of California and possibly elsewhere. The syndicate is made up of independent resource and other companies. Through the syndicate, Monterey has purchased a 12.5-per-cent working interest in a 40-acre tract held by ABA Energy Corporation of Bakersfield, Calif., on the Cal Canal anticline in the San Joaquin basin of Kern county in California. By drilling an exploratory well to a specified depth within the Miocene Temblor formation below 14,500 feet, and establishing paying production therefrom, the syndicate can earn a 100-per-cent working interest and a 78.5-per-cent revenue interest before payout, and a 77.5-per-cent working interest and 62-per-cent revenue interest after payout, in the 40-acre tract. ABA will be the operator and will retain the option to take a 5-per-cent working interest in the tract prior to the commencement of drilling. According to a report by an independent geologist/geophysicist, the ABA/Solana tract is thought to be located totally within the Cal Canal anticline's structural closure, approximately 1,500 feet from Berkley Petroleum Corp.'s Cal Canal No. 1 exploratory well. Cal Canal No. 1 is reportedly drilling at a depth of approximately 14,000 feet, near the top of the Miocene Temblor formation. The Temblor formation, which is estimated to be at least 4,000 feet thick and contain multiple, thick, stacked reservoir sands at Cal Canal, is productive at the giant Elk Hills field to the southeast at about 10,000 feet, and at Lost Hills, where Berkley has encountered gas and condensate, at 17,650 feet. Through 1997, the Temblor formation, although lightly explored, had produced a total of 115 million barrels of oil, principally from the McKittrick, Cymric and North Belridge fields. The five main oil fields comprising the southern San Joaquin basin have produced a total of 1.2 billion barrels from all formations during the same period. At Cal Canal, the Temblor formation is thought to be gas-bearing, with additional potential for retrograde condensate and light oil reservoirs in multiple horizons. The long-range objective of the syndicate is to acquire and develop prospective oil and gas properties with a focus on both the Sacramento and San Joaquin basins of California, especially in Sacramento, where no deep tests have been drilled, despite numerous prospects. New Energy has reserved a price of 10 cents per share for the three million common shares to be issued pursuant to the Monterey acquisition. New Energy has also reserved a price of 10 cents per share for the up to three million common shares to be issued upon exercise of the three million warrants. The completion of the Monterey acquisition is subject to regulatory approval and New Energy is required to file a formal application with the Alberta Stock Exchange within 14 calendar days of this press release to maintain this price reservation. The completion of the Monterey acquisition is also subject to several additional conditions precedent, including the receipt of all necessary regulatory approval, satisfactory completion by New Energy of a due diligence review of Monterey, New Energy board approval and the entering into a formal share purchase agreement between the parties. The Monterey acquisition will not constitute a reverse takeover of New Energy pursuant to Circular No. 8 of the ASE Policies and Procedures Manual as no change of control will result from the transaction and there will not be a substantial change in the nature of the business of New Energy as the Monterey acquisition will be an expansion of the existing oil and gas business of New Energy. New Energy has reserved a price of 10 cents per share for the grant of stock options to acquire up to 1.2 million common shares. The stock options will be granted to directors and officers of the corporation. The grant of the stock options is subject to regulatory approval and the corporation is required to file a formal application with the Alberta Stock Exchange within 14 calendar days of this press release. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com