MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, FEBRUARY 17, 1998 (6)
SERVICE SECTOR, Con't
Arcis Corporation (RKS/TSE) announced that further to the news release of January 19th, 1998, the Company is proceeding with its purchase of Sourcex Geophysical Inc. for $2.5 million plus 2,307,694 common shares of Arcis (valued at $1.5 million or $0.65 per share).
Arcis has completed its due diligence, received Board approval and accepted a Confirmation of Financing from a Canadian Chartered Bank. This will expand the Company's lines of credit to $3.45 million.
The acquisition will significantly enhance the combined companies' ability to conduct 2D and particularly larger 3D seismic acquisition for its clients. It also allows Arcis to continue to build its seismic data library. In the year ended September 30th, 1997, Sourcex had revenues of $20.8 million.
In addition, Arcis has received a proposal, from a large U.S. private company, for a $2 million 7% convertible subordinated debenture. The debenture has a three-year term and is convertible at $0.60 per share. Arcis has accepted the proposal, which is subject to due diligence and any required regulatory approval. The convertible debenture financing is scheduled to close at the same time as the February 27th, 1998 closing date of Sourcex. The effective date of the acquisition is January 2nd, 1998.
Arcis, which was established in December 1996, is a uniquely integrated geophysical services company operating in Western Canada. The Company processes, archives, brokers and manages seismic data as well as providing two field acquisition crews to shoot exclusive and non-exclusive seismic data. It is Arcis' primary objective to create a significant proprietary seismic data library in the next few years as well as to continue to provide outstanding service to over 150 oil and gas companies.
Arcis has 23.6 million shares issued and outstanding prior to the purchase of Sourcex and the issuance of the convertible debenture.
AGRA Inc. (AGR/TSE) Newfoundland-based subsidiary AGRA ShawMont and its 50/50 joint partner Brown & Root Inc. (together known as SBR Offshore) will serve within the overall Terra Nova Alliance team, as engineers and project managers for the Terra Nova project. They will also be responsible for procurement services related to the steel floating production, storage and off loading (FPSO) vessel and the topsides operations and equipment facilities.
The overall contract value to AGRA for the Terra Nova project is expected to be approximately $330 million. With today's project sanctioning, AGRA will add another $200 million to its backlog in addition to $130 million related to front end engineering and procurement work now in progress with respect to the project.
Terra Nova is being developed on an ''alliance basis'' whereby the project owners and other alliance members will work together to maximize the integration, management and full field life value of the project. The alliancing approach encourages innovation and involves the sharing of risk and reward among the partners to ensure the highest standards of quality and on-time project delivery for the owner.
AGRA ShawMont and its parent company AGRA Monenco are wholly owned subsidiaries of AGRA Inc., one of Canada's largest international engineering, construction, environment and technology corporations. AGRA employs 5,000 people and operates 155 offices in 22 countries.
PIPELINE NEWS
None
EARNINGS REPORTS
Chieftain International, Inc. (CID/TSE & AMEX) - See Kerms Watchlist Companies In The News
Draig Energy Ltd.(DRA/ASE) See Kerms Top 21 - Spec 15 - Serv 9 Companies In The News
CE Franklin Ltd. (CFT/TSE.- CFT/AMEX) See Kerms Watchlist Of Companies In The News
Alliance Energy Inc. (AEI/ASE) Reports Results For Year
Message 3457097
Renata Resources Inc. Reports 1997 Results
Message 3457072
FINANCIAL
Peregrine Oil and Gas Ltd. (PGG/ASE) announced that the Company has completed a Private Placement of 790,000 Special Warrants to raise a total of $987,500.
The 790,000 Special Warrants are convertible into 790,000 common shares at $1.25 each, 395,000 A warrants which are convertible into common shares at $1.50 each on or before May 15, 1998, and 395,000 B warrants which are convertible into common shares at $2.00 each on or before November 15, 1998.
Peregrine will use the proceeds of the Private Placement to finance the continuous acquisition of lands in the Arkoma Basin of Arkansas and Oklahoma and to continue with the completion of previously drilled wells and the drilling of new exploration
Range Petroleum Corporation (RAN/VSE) announced a private placement consisting of 116,000 units priced at $1.60 per unit was placed with Range employees. Each unit comprises one common share and one common share purchase warrant. Each warrant is exercisable at $1.60 per share for a one-year period.
Artemis Energy Limited announced that a private placement generated $1.1 million in proceeds and resulted in the issuance of 531,906 shares. The issue was made up of 475,906 flow through shares at a price of $2.10/share, providing $999,403, and 56,000 shares at a price of $2.00/share providing $112,000. Including the shares issued under this private placement, Artemis now has 4,167,212 shares outstanding.
MISC.
Explogas Ltd. (XPG/MSE) announces that the Board of Directors has approved a resolution authorizing the Company to file Articles of Amendment to consolidate the issued and outstanding common shares of the Company on a one-for-four basis.
Furthermore, pursuant to a letter of intent entered into February 10, 1998, M. Jean-Guy Lambert will acquire control of the Company by purchasing from Genoil Merchant Banking Intragroup Restricted Limited 5,000,000 common shares, representing approximately 19.8 percent, in the capital of Explogas, of which 4,425,000 are currently escrowed pursuant to an escrow agreement dated August 22, 1996. The new Board of Directors will be composed of Jean-Guy Lambert, K.A. (Andy) Gustajtis and Diane Goyer.
The Directors of Chieftain International Funding Corp., a special purpose finance subsidiary of Chieftain International, Inc., (CID/TSE) have declared the regular dividend on the Company's US$1.8125 Convertible Redeemable Preferred Shares for the first quarter of 1998. The dividend is payable on March 31, 1998 to holders of record on March 15, 1998 and covers the period from January 1, 1998 to March 31, 1998. The dividend will amount to US$0.453125 per share.
Constellation Oil & Gas Ltd. (CSK.A/ASE) announces that Richard Chisholm, Vice-President, Exploration and Norman Johnson, Vice-President Finance & Administration have terminated their respective positions with the Corporation. Both gentlemen have agreed to provide assistance to the Corporation during a period of transition.
It was previously announced that Mr. Zahid J. Kiani, who was originally elected as director on July 2, 1997, has been appointed Chairman of the Board. Mr. Kiani brings an international scope to the position of Chairman as he operates out of offices in Europe and Pakistan. The Board has also appointed an additional director, Dr. Asef Ali Syed, a businessman of Vancouver, British Columbia. Dr. Syed brings further international experience to the Corporation. The Corporation also announced the appointments of two Board committees, comprising the Audit Committee, the members of which are Mr. Clifford James, Dr. Waseem Rahman and Mr, Afzal Mahmood and the Compensation Committee, the members of which are Mr. Lutfur Khan, Mr. Jan Horesji and Dr. Asif Syed. Mr. Zubair Hashmi has been appointed President of the Corporation and Dr. Waseem Rahman has been appointed Executive Vice-President of the Corporation.
The Corporation is in the process of consolidating its assets to manageable core areas which it intends to enhance. The Corporation intends to divest itself of several other areas. Coupled with its domestic activity in western Canada, certain members of the Board are seeking out international oil & gas opportunities for the Corporation.
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