NEW LISTING / Emerald Bay Resources to trade on the ASE
Emerald Bay Energy Inc. ("EBY") is pleased to announce that it has been
notified by The Alberta Stock Exchange (the "ASE") that its shares will
commence trading on the ASE on Thursday, April 15, 1998. EBY is a junior
capital pool company which has recently completed its initial public offering
of 2,000,000 common shares at a price of $0.15 per share.
Additionally, EBY further announces that, as its proposed Major Transaction,
EBY has entered into a Purchase and Sale Agreement with Karl Oil & Gas Ltd.
("Karl") to acquire net profit interests, ranging from 25% to 50%, in natural
gas and hydrocarbon liquids from 13 wells in the Edson region of west-
central Alberta producing from the Cardium Formation at an average depth of
2000 meters. The acquisition also includes working interests of 37.5% and
50%, respectively, in two additional wells and a 37.5% interest in natural
gas and hydrocarbon liquids on 1760 gross acres of undeveloped land in
the region. Current gas production from these wells is being processed at
three separate facilities operated by other producers.
Terms of the acquisition are governed by a Purchase and Sale Agreement
executed between EBY and Karl. As consideration for the transfer of the
interests, EBY will pay $700,000 cash in addition to issuance of 1,400,000
treasury common shares of EBY, with a deemed issue price of $0.50 per share,
for total consideration of $1,400,000. The proposed acquisition will be at
arms' length to EBY and the value of the consideration was determined by
negotiation between the parties based on independent engineering reports
prepared for EBY. Financing for the cash component of the proposed
acquisition will be provided from a $2,100,000 line of credit committed by
EBY's bank.
Completion of the proposed Major Transaction is subject to the approval of
the ASE and the public shareholders of EBY. Pending receipt of approval of
the ASE, more detailed information relating to the proposed Major Transaction
will be provided to shareholders of EBY in the form of an Information
Circular in advance of a special meeting of the shareholders at which EBY
will seek approval for the acquisition.
Management of EBY has stated that the announcement of the proposed Major
Transaction is an important step in the company's development into an active
participant in the oil & gas industry. Pending successful completion of the
proposed Major Transaction, EBY will continue to evaluate and consider
further acquisition opportunities in oil & gas exploration as well as oil &
gas services.
For further information, contact Leonard D. Rice,
President and Chief Executive Officer,
Suite 820, 639-5th Ave SW,
Calgary, AB, T2P 0M9. Ph: (403) 262-6000.
EMERALD BAY ENERGY INC. ANNOUNCES PROPOSED MAJOR TRANSACTION AND COMMENCEMENT
OF TRADING ON THE ALBERTA STOCK EXCHANGE
1998-04-15
CALGARY, ALBERTA
Emerald Bay Energy Inc. ("EBY") is pleased to announce that it has been
notified by The Alberta Stock Exchange (the "ASE") that its shares will
commence trading on the ASE on Thursday, April 15, 1998. EBY is a junior
capital pool company which has recently completed its initial public offering
of 2,000,000 common shares at a price of $0.15 per share.
Additionally, EBY further announces that, as its proposed Major Transaction,
EBY has entered into a Purchase and Sale Agreement with Karl Oil & Gas Ltd.
("Karl") to acquire net profit interests, ranging from 25% to 50%, in natural
gas and hydrocarbon liquids from 13 wells in the Edson region of west-
central Alberta producing from the Cardium Formation at an average depth of
2000 meters. The acquisition also includes working interests of 37.5% and
50%, respectively, in two additional wells and a 37.5% interest in natural
gas and hydrocarbon liquids on 1760 gross acres of undeveloped land in
the region. Current gas production from these wells is being processed at
three separate facilities operated by other producers.
Terms of the acquisition are governed by a Purchase and Sale Agreement
executed between EBY and Karl. As consideration for the transfer of the
interests, EBY will pay $700,000 cash in addition to issuance of 1,400,000
treasury common shares of EBY, with a deemed issue price of $0.50 per share,
for total consideration of $1,400,000. The proposed acquisition will be at
arms' length to EBY and the value of the consideration was determined by
negotiation between the parties based on independent engineering reports
prepared for EBY. Financing for the cash component of the proposed
acquisition will be provided from a $2,100,000 line of credit committed by
EBY's bank.
Completion of the proposed Major Transaction is subject to the approval of
the ASE and the public shareholders of EBY. Pending receipt of approval of
the ASE, more detailed information relating to the proposed Major Transaction
will be provided to shareholders of EBY in the form of an Information
Circular in advance of a special meeting of the shareholders at which EBY
will seek approval for the acquisition.
Management of EBY has stated that the announcement of the proposed Major
Transaction is an important step in the company's development into an active
participant in the oil & gas industry. Pending successful completion of the
proposed Major Transaction, EBY will continue to evaluate and consider
further acquisition opportunities in oil & gas exploration as well as oil &
gas services.
For further information, contact Leonard D. Rice,
President and Chief Executive Officer,
Suite 820, 639-5th Ave SW,
Calgary, AB, T2P 0M9. Ph: (403) 262-6000. |
