FIELD ACTIVITIES / Interaction Resources Corporate Update
Shares Issued and outstanding - 46,665,281
TSE SYMBOL: INR
DECEMBER 22, 1997
CALGARY, ALBERTA--At Parkland B.C. Interaction has halted
completion operations of the previously cased potential Wabamun
gas well located at 1-36-81-15W6M. Operations have been halted at
the current stage because subsequent activity would result in
ongoing work through the holiday season. Completion and testing
operations are set to resume after the holidays. The 1-36 well
was cased to the top of the Wabamun zone on November 20, 1997. A
150m section of dolomitized Wabamun was left openhole with more
than 30 meters of log indicated potential gas pay in the upper
half and the lower half being heavily fractured. Completion and
testing operations to date have found that the fractured portion
is a high permeability zone into which a substantial volume of
drilling and completion fluids has been lost. The next stage of
the operation requires isolation of the fractured zone,
facilitating completion and stimulation of the porosity in the
upper half of the wellbore. Interaction remains very encouraged
by the results of this well and considers this event to be an
operational issue which does not impact the potential outcome.
At Workman, Saskatchewan the 3-27-1-32W1M Precambrian exploration
well that was cased on November 12, has been completed and tested
in multiple zones, none of which are deemed to be currently
economic. One of the zones has provided sufficient new
information to warrant further investigation.
In other news Interaction Resources Ltd. is pleased to announce
that it has received receipts from the Alberta, Ontario and Quebec
Securities Commissions for it's prospectus, qualifying the
distribution of 8,990,000 common shares issuable upon conversion
of 8,990,000 outstanding special warrants. The special warrants
were previously issued on October 20, 1997. The offering was
underwritten by Sprott Securities Limited and Peter's and Co.
Limited. The net proceeds from the offering will be used to fund
the Company's 1997/1998 exploration and development drilling
program, acquisition activities and general working capital
requirements.
Interaction Resources Ltd. is pleased to report the following
changes and appointments to its Board of Directors, effective the
date of a Board meeting held December 18, 1997. Mr. Jim McKelvie
has been appointed Chairman of the Board, new appointees to the
Board include Messrs. John Brussa and Keith Caldwell. Effective
January 1,1998, Mr. Gordon Reid is resigning from the Board after
being first elected in 1993. He played an instrumental role in
re-organizing the Company in 1993 and has served in the capacity
of Chairman, Director and Chief Financial Officer since that time.
Mr. Reid's contribution over the past 4 years is greatly
appreciated.
Mr. McKelvie brings with him many years of expertise in the oil
and gas business with specific expertise in issues of strategic
planning, corporate governance and financial management. He has
held senior finance and corporate positions with both private and
public companies and currently serves on the Board of Directors of
Tarragon Oil and Gas Limited, Momentum Energy International Inc.,
and A.G. Simpson Ltd. Mr. McKelvie was first elected to the Board
of Interaction in May of 1997. Mr. Richard Osler, the former
interim Chairman, is the longest standing external director and
remains an important and committed member of the Interaction
Board.
New appointees to the Board include Messrs. John Brussa and Keith
Caldwell. Mr. Brussa is the Senior Tax Partner with the law firm
Burnet Duckworth and Palmer in Calgary where he has practiced
since 1987. Mr. Brussa has extensive experience in the oil and
gas business, with specific emphasis on taxation, deal structuring
and strategic planning. Mr. Brussa serves on the Board of
numerous Companies including Barrington Petroleum Ltd., Penn West
Petroleum Ltd., Baytex Energy Ltd. and First Energy Capital Corp.
Mr. Caldwell is a Professional Geologist with a Msc. (Geology)
from the University of Manitoba. He worked with Gulf Canada from
1967 to 1990, first as Exploration Manager and eventually as Vice
President, Exploration. A significant portion of Mr. Caldwell's
experience is Western Canadian based, however during his latter
years at Gulf he gained extensive exposure to International
exploration, with specific concentration on S.E. Asia, N. Africa
and the North Sea. Mr. Caldwell currently serves on the Board of
Directors of Tarragon Oil and Gas Ltd., Rigel Energy Corporation
and Momentum Energy International Inc.
Also at the December 18, 1997 Board meeting, the Board
implemented, effective immediately, a shareholders rights plan (
"the Plan"). The Plan has been adopted in order to provide
Interaction's Board of Directors and shareholders sufficient time
to assess and evaluate any take-over bid and other alternatives to
maximizing shareholder value in the event a take-over bid is made,
and to ensure that all Interaction shareholders are treated
equitably. The plan is not intended to deter take-over bids and
is not being adopted in response to any pending or threatened
take-over bid.
To implement the Plan, the Board of Directors of Interaction
authorized the distribution of one share purchase right for each
outstanding common share of Interaction held at the close of
business on December 18, 1997. The rights issued to Shareholders
under the Plan will entitle the holder to acquire common shares of
Interaction at a 50 percent discount to the prevailing market
price upon a person or group acquiring 20 percent or more of the
common shares of Interaction. However the rights are not
exercisable in the event that a 'permitted bid' is made. A
'permitted bid' is a take-over bid which provides for a minimum
deposit period of at least 45 days and which is made to all
shareholders regardless of the jurisdiction in which the
shareholder resides. A 'permitted bid' must also satisfy certain
other conditions, including that a minimum of 50 percent of the
outstanding shares (exclusive of shares held by the offeror) must
be tendered into the bid after which time the bid must be extended
for a further period of 10 business days.
The Plan is in place until the date of Interaction's Annual
Shareholder Meeting in the year 2000. The Plan will be submitted
for ratification by the common shareholders at Interaction's next
annual shareholders meeting, which is scheduled to take place in
May, 1998. To remain effective, the Plan must be approved by more
than 50 percent of the votes cast at that meeting.
Interaction's common shares are listed on the Toronto Stock
Exchange under the symbol 'INR'. |
