Crossy,
Some time ago BPR.V (BPI Industries., Inc.) had been mentioned favorably on this board.
Today they issued a press release and have also made several other filings which can be viewed at www.sedar.com then select English, then go to company profiles, then "B", find BPI and selct, and view filings.
Is this still being followed here ? Thoughts ?
Today's release:
BPI Signs Technical Services Agreement with BHP Billiton
For Immediate Release, April 5, 2005
BPI Industries Inc. (TSXV- BPR) announced today that it has signed a Technical Services Agreement (TSA) with BHP Billiton (NYSE – BHP; BBL Australia - BHP.AX; London – BLT.L) to provide technical services related to BHP Billiton’s technologies and know how in the areas of drilling and completion of in-seam coalbed methane wells as well as methane recovery from coal mining operations. These technologies and know how will be utilized on BPI’s projects in the Illinois Basin.
Pursuant to the TSA, BHP Billiton’s compensation will be 4,000,000 stock appreciation rights (with the potential of an additional 2,000,000 rights) that can be exercised by BHP Billiton only if they acquire a majority in value of the stock or assets of BPI. These rights are a contractual right that will accrue value based on any increase in BPI’s stock price over the closing price of the stock on March 31, 2005. The initial term of the TSA is eighteen months with BHP Billiton having the right to extend the TSA for additional 6-month terms.
In addition, BHP Billiton will have a right of first refusal to match any offer to acquire a majority in value of the stock or assets of BPI. This right of first refusal will expire on September 30, 2006. BHP Billiton has agreed not to provide technical assistance or acquire any coalbed methane assets in the Illinois Basin for the term of the TSA plus six months.
BHP Billiton is one of the largest resource companies in the world with a Coalbed Methane Business Unit that currently has CBM interests in Australia and China. This Agreement with BPI marks BHP Billiton’s entry into coalbed methane in North America. The Coalbed Methane Business Unit is based in Melbourne, Australia, but operates under BHP Billiton’s Energy Coal Sector Group that has a significant presence in Houston, Texas.
BHP Billiton will provide technology and know how for its MRD (Medium Radius Drilling) techniques to BPI with the initial drilling of three MRD wells in early summer 2005. The initial well locations will be determined following completion of testing at the Company’s Montgomery Project. BHP Billiton’s MRD technique has proven to be much more capital cost effective than conventional vertical drilling. BPI management believes BHP Billiton’s MRD technology is particularly well suited to the coals in the Illinois Basin.
Additionally, BHP Billiton is currently field-testing additional drilling and completion technologies that, upon the satisfactory completion of testing in Australia, will be field-tested at BPI in the Illinois Basin.
This transaction culminates ten months of technical review, due diligence and negotiations between BHP Billiton and BPI that will provide BPI with state of the art industry technologies and know how. Additionally, BPI’s management believes this TSA represents a strategic alliance with a company that recognizes the assets that BPI has assembled and that BPI’s management plans to continue to grow and quantify the value of these assets for the maximum benefit of the Company’s shareholders.
The Company also announces that it has granted, pursuant to its current stock option plan, an aggregate of 1,211,000 options to employees, officers and directors of the Company. These options are exercisable at a price of Cdn$2.19 per share for a period of five years, expiring March 28, 2010.
About BPI Industries Inc.
BPI Industries is a Canadian, publicly listed, oil and gas exploration company that currently controls 418,435 acres of coal bed methane rights in the Illinois Basin. Its assets include a 100% owned leasehold interest in a contiguous 43,000 acre coalbed methane property in the southern portion of the Illinois Basin (Delta Project); options and a lease on four additional acreage blocks totaling 239,487 acres of coalbed methane property in the north central portion of the Illinois Basin (Montgomery Project) and options and leases for 135,948 acres in the north western portion of the Basin (Washington Project). In addition, the Company indirectly owns an 11.03% interest in the 43,000 acre Jericho Project in Sullivan County, Indiana, in the eastern portion of the Illinois Basin. The Jericho Project was the first producing in-seam coalbed methane project in the Illinois Basin and BPI is the technical manager of that project. BPI recently initiated sales of gas production from its Delta Project in Illinois where the company is actively drilling new production wells.
BPI additionally has negotiated purchase options to acquire 147,000 acres of coal in Shelby, Clinton, Christian and Marion Counties, Illinois. The Company is in the process of exercising and converting these options to additional CBM rights in the Illinois Basin.
BPI’s wholly owned subsidiary, Illinois Mine Gas LLC (IMG) plans to commercially produce coal mine methane gas from abandoned mine works in the Illinois Basin. Production will start with the 20,000-acre area of abandoned mine works at the Company’s Delta Project where IMG is currently testing seven wells that it has drilled into abandoned mine works.
BPI has invested in excess of Cdn$ 18.5 million in the Illinois Basin to date on acquisition, testing, evaluating and defining of oil and gas opportunities. BPI is now focused on coal bed methane and coal mine methane exploration and development in the Illinois Basin. There are two major gas pipelines that cross all of BPI’s acreages, providing a ready access to markets for future gas production. The common shares of the Company trade on the TSX Venture Exchange under the symbol “BPR”.
ON BEHALF OF THE BOARD OF DIRECTORS
“James G. Azlein”
James G. Azlein, President
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities of the corporation have not been registered under the U.S. Securities Act, 1933, as amended, and subject to certain exemptions may not be offered or sold in the United States or to U.S. persons. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
