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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: ItsAllCyclical who wrote (53894)	11/4/1999 11:19:00 AM
From: Wowzer	Read Replies (1) \| Respond to of 95453

CHAR, aaah those pesky details kill you every time... Thursday November 4, 10:50 am Eastern Time Chaparral stock opens lower as trade resumes HOUSTON, Nov 4 (Reuters) - The stock of oil company Chaparral Resources Inc. (NasdaqSC:CHAR - news) opened sharply lower on Thursday as trading resumed on Nasdaq after the company spelled out that a recent breakthrough loan agreement will result in issuance of several million new common shares. At midmorning, Chaparral shares had recovered some gains but were off 6-1/2 at 18-1/2, after opening at just over 13 per share on Nasdaq. Shares of the financially-troubled Houston oil company rocketed upward Tuesday after the loan agreement was announced, rising to a high of $35 on volume of almost one million shares, 100 times its usual volume, following a Monday close just below $7. Nasdaq halted trading Tuesday afternoon at $25 and trading remained suspended through Wednesday. Investors in the company include Bill Gates' private investment vehicle Cascade Investment. In a statement released on Wednesday, Chaparral said it knew of no reasons for Tuesday's sharp rise in its stock price other than the financing deal it announced late Monday. The $24 million loan deal, with Shell Capital Services Ltd., would enable Chaparrel to develop the Karakuduk oil field in the Central Asian nation of Kazakhstan, the company said. In Wednesday's statement the company also set out in greater detail the conditions that still have to be satisfied for the agreement to take effect and cautioned that it could not give investors any assurance that the loan will indeed go ahead. Chaparral said that as part of the agreement it planned a rights offering of its common stock at $1.86 per share, proportionate to stockholders' existing holdings. Conversion of debt and granting of a warrant to Shell will result in issuance of 5.3 million new shares of common stock, while anti-dilution provisions of the company's preferred stock could result in issuance of 225,000 new shares of common stock. Chaparral currently has some 978,000 shares of common stock outstanding. According to public records Bill Gates currently holds 29,000 shares, or 5.7 percent, of common stock through Cascade Investment.