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

To: JGreg who wrote (2627)	10/31/1997 1:04:00 PM
From: FCS	Read Replies (1) \| Respond to of 95453

Check out Master Downhole Canada Inc. MDH.A on ASE. This one could be a flyer or a possible take over, IMO. currently at $1.32 CDN. There are a few articles in Krem's Korner Reply #'s 6414, 292, 3784, 3766, 3743. Happy hunting. SERVICE SECTOR / Master Downhole Canada Inc. Updates Acquisition Details ASE SYMBOL: MDH.A OCTOBER 15, 1997 CALGARY, ALBERTA--Master Downhole Canada Inc. is pleased to announce the following: 1. The Company has sent its proxy materials to shareholders to ratify the agreement to purchase the patents, proprietary rights and business in connection with the downhole drilling motors and other tools now held by Wenzel Downhole Tools Inc., or its subsidiaries, and including all purchase orders and work quoted or bid on, but excluding Wenzel Downhole's United States tool rental business as presently carried on by Zeal Incorporated, and the right to use the name "Wenzel Downhole Tools Inc." The Corporation will pay for these rights by: a) issuing 2,900,000 Class A Shares, at a price of $0.40 per share b) issuing 6,100,000 Series 1 Shares, at a price of $0.40 per share. c) delivering a $1,000,000 promissory note, bearing no interest and due 15 years after the date of the approval of this transaction, or upon the insolvency of the Corporation, secured against the patents, and d) paying a purchase price installment equal to 4 percent of all gross sales or rentals of products using the technology covered by the Patents, payable for a period of 15 years from the date of the approval of this transaction. The shareholders of record as at October 8, 1997 will be entitled to vote on this transaction at the meeting which will be held on November 14, 1997. 2. The Corporation also announces that Wenzel Downhole Tools Inc. has received a purchase order for the sale of motor parts to a customer outside Canada. The purchase order is for twenty tools per month and has been verbally increased to forty tools per month. The purchase order is subject to cancellation upon thirty days notice. The dollar value to Wenzel Downhole Tools Inc. of the gross sales based upon that purchase order will be between $ 300,000.00 (20 tools per month) and $ 600,000.00 (40 tools per month) per month. Master Downhole Canada Inc. will see the benefit of the purchase order because of the manufacturing agreement with Wenzel Downhole Tools Inc. and moreso if the purchase described in point one of this announcement is approved by the shareholders.