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 : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Arnie who wrote (9581)	3/18/1998 2:13:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Merit Energy Purchases Rigel O&G Properties MERIT CLOSES SW SASKATCHEWAN DEAL CALGARY, March 17 /CNW/ - Merit Energy Ltd. (''Merit'') is pleased to announce that it has closed the transaction to purchase Rigel Oil & Gas Ltd.'s southwest Saskatchewan oil and gas assets for consideration of $35.5 million. Merit previously announced the transaction on January 26, 1998. The purchase includes current production of approximately 2,000 barrels of oil equivalent per day along with 275,000 net acres of undeveloped land. The assets are 90 percent operated with high working interests and an extensive infrastructure. Approximately 60 percent of the production consists of natural gas. In Merit's opinion the transaction has significant exploration and development potential and the Company plans to spend $15 million developing the properties over the course of 1998. Included in these plans are drilling and compression at Vidora and Cypress Lake, both shallow gas areas. As well there are a number of deeper oil and gas prospects with large reserve potential that could have a significant impact on the Company's growth. On close of this transaction Merit's production is 6,875 barrels of oil equivalent per day with a product mix of 75/25 gas to oil ratio.