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Gold/Mining/Energy : Paramount Ventures & Finance -- Ignore unavailable to you. Want to Upgrade?

To: Flea who wrote (761)	5/14/1998 5:59:00 PM
From: Ed Pakstas	Read Replies (1) \| Respond to of 4884

*NEWS RELEASE* Plan of arrangement with subsidiary proposed Paramount Ventures & Finance Inc PVF Shares issued 27,591,374 May 13 close $0.70 Thu 14 May 98 News Release Mr. Paul Conroy reports The company is proposing a statutory plan of arrangement with its wholly owned subsidiary, Paramax Resources, which will result in Paramax acquiring all of Paramount's oil and gas properties for the issue to Paramount of Paramax shares and the Paramount shareholders receiving Paramax shares in the same proportions as they then hold in Paramount. Upon completion of the arrangement, Paramax will have an interest in two oil and gas properties and approximately $400,000 in working capital. The resource property includes a 4 per cent interest (2 per cent after payout) in the West Delta block 78 prospect offshore Louisiana. The initial well on this block has been drilled and tested. Based on the test results production from this well is expected to be in excess of 2,000 barrels of oil a day with initial production scheduled for September 1998. The operator, Basin Exploration, is preparing plans for the production facilities and additional development wells. Paramax will also have a 10 per cent interest (7.5 per cent interest in the balance of the lands) in the South Fort Stockton gas prospect in Texas. The first well on this prospect is now drilling at a depth of 12,400 feet. The well is to be drilled to a depth of 26,000 feet to test the Ellenburger formation. Upon completion of the arrangement, Paramax will have approximately 7,700,000 shares issued of which Paramount will own approximately five million shares (65 per cent) and the existing Paramount shareholders will own approximately 2,700,000 shares (35 per cent). The shares distributed to Paramount shareholders will be based upon their pro rata ownership of Paramount shares. The actual shares issued by Paramax will be based on engineering studies and a fairness opinion, which are being prepared. The shareholders of Paramount will vote on the statutory plan of arrangement to create Paramax at an upcoming special shareholders meeting. The transaction is subject to shareholder and regulatory approval, including Vancouver Stock Exchange approval of the listing of Paramax shares and the completion of a fairness opinion. Paramount will continue to be listed on the Vancouver Stock Exchange and will own all the mineral exploration properties. Paramount has in excess of $10-million in working capital. WARNING: The company relies on litigation protection for "forward-looking" statements. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com