Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (46098)	11/2/1999 5:32:00 PM
From: tonto	Respond to of 122087

More CHAR. Will it trade again tomorrow? Chaparral share price explodes Oil and gas company signs $24 million loan pact By Myra P. Saefong, CBS MarketWatch Last Update: 2:47 PM ET Nov 2, 1999 Earnings Surprises NewsWatch HOUSTON (CBS.MW) -- Chaparral Resources shares exploded by nearly 358 percent Tuesday after the oil and gas company said it's signed a $24 million loan agreement with Shell Capital Services Limited to develop an oilfield in Kazakhstan. ... CBS MarketWatch Columns Updated: 11/2/99 3:56:32 PM ET Shares of Chaparral (CHAR: news, msgs) skyrocketed 24 3/16 to 31 3/4 Tuesday on nearly 60 times in average daily trading volume. Late Monday, the Houston-based company said it signed a $24 million loan agreement with Shell Capital Services Limited that will allow it to develop the Krakuduk Field in the Mangistrau Region of the Republic of Kazakhstan. Chaparral will develop the oilfield through its 50-percent owned Karakuduk-Munay (KKM) unit, which holds a license to develop the 17,000 acre field. The remaining 50 percent interest in KKM is held by Kazakh investors, including the government-owned oil company, KazakhOil. KKM has also entered into a crude oil sale and purchase agreement with Shell Trading International Limited for the purchase of oil production from the field. The company expects funding to begin in mid to late November of this year, contingent upon specific conditions, including the conversion of outstanding loans by stockholders to Chaparral Resources, the repayment of certain indebtedness, and an equity infusion of approximately $9 million, Co-Chairman, John G. McMillian said in a statement. A company spokesperson refused further comment on the loan agreement. Chaparral issued $3 million of its 8 percent Non-Negotiable Convertible Subordinated Promissory Notes as interim financing until the funding is complete. The news comes after the company's August 23 filing of its quarterly report with the Securities Exchange Commission which said Chaparral didn't presently have the cash reserves required to satisfy $5.07 million in short-term debt obligations due in August and September. It's inability to satisfy the debt "may lead to the company's default on some, or all, of the company's outstanding loans," the report said. In the event of default, the Company may be required to transfer "all rights to KKM and the Karakuduk Field, to the company's creditors and the company's investment in the Karakuduk Field would be lost." "These conditions raise substantial doubt about the company's ability to continue as a going concern," the report went on to say. Myra P. Saefong is a reporter for CBS MarketWatch. _____________________________________________________________ _____________________________________________________________ Tuesday November 2, 4:30 pm Eastern Time Chaparral stock jumps after news of Kazakh deal HOUSTON, Nov 2 (Reuters) - Shares of Chaparral Resources Inc.(NasdaqSC:CHAR - news), an oil company in which Microsoft Corp. founder Bill Gates has invested, more than tripled in price on Tuesday after it announced a breakthrough deal to fund its work in the Central Asian nation of Kazakhstan. In afternoon trading, Chaparral Resources stock was up 18-13/16 at 25-3/4 on the Nasdaq, a rise of 271 percent, before trading was suspended pending more news from the company. The sharp rise posted before the suspension made Chaparral by far the biggest gainer on the Nasdaq and helped claw back some of the ground the stock has lost in a steep decline since last year. On Monday afternoon Chaparral announced that it had signed a $24 million loan agreement with Shell Capital Services Inc., a Royal Dutch/Shell unit, that will enable it to develop the Karakuduk oil field in Kazakhstan. Chaparral's only asset is a 50 percent stake in Karakuduk-Munay Inc., (KKM) which holds a license to develop the 17,000-acre field. The rest of KKM is held By Kazakh investors, including the state oil company, KazakhOil. Chaparral's director of corporate affairs, Natalie Hairston, told Reuters the company had been trying to secure development financing for the last couple of years. ``It's been a long time coming, so we're very pleased that the documents have finally been signed,' she said. Hairston emphasized that Chaparral still had to satisfy several conditions before it received the funds, including conversion of other loans and a $9 million equity infusion. Pessimism among investors about the company's ability to secure financing had previously caused the company's stock price to fall sharply since November of 1998. Earlier this year the stock price fell below $1 and Nasdaq rules forced Chaparral to implement a 1-for-60 reverse stock stock split to retain its listing. In a gloomy second-quarter financial statement filed in August, management warned investors that Chaparral's perilous financial position raised ``substantial doubt about the company's ability to continue as a going concern.' Even after Tuesday's strong gains, the stock remains well below the highs reached last November when it touched $180, after taking the reverse split into account.