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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (11451)	6/25/1998 12:11:00 PM
From: Kerm Yerman	Respond to of 15196

MERGERS - ACQUISITIONS / Ohio Resources Corp Acquires Xeno Inc. OHIO ACQUIRES MONTANA PRODUCTION & ACREAGE CALGARY, June 24 /CNW/ - Ohio Resources Corporation (''Ohio'') (VSE-OHO) is pleased to announce that it has completed the acquisition of all the outstanding shares of Xeno, Inc. (Xeno), a Montana Corporation, pursuant to a share purchase agreement dated June 24, 1998. Xeno is the operator of the Battle Creek gas field located in Blaine County, Montana. Immediately subsequent to the acquisition of Xeno, Ohio has caused its subsidiary Xeno to complete the acquisition of the interests of three other private companies, pursuant to asset purchase agreements dated June 24, 1998, thereby consolidating its interest in the producing field and facilities to 25%. The field is currently producing 4.7 mmcf/d (1.2 mmcf/d net to Xeno). In addition to the Battle Creek gas field, Xeno holds a high working interest in a large, highly prospective undeveloped land base in the immediate vicinity of 123,647 gross acres (77,178 net acres). Ohio has plans for an aggressive seismic and development drilling program. The VSE had approved in principle these transactions prior to such closing. The cumulative purchase price for the four acquisitions is US$2,000,000 and 400,000 Ohio shares priced at $1.00 per share which remain subject to a hold period expiring June 25, 1999. Ohio has financed the purchase via a CDN$2,800,000 term loan with the Canadian Western Bank. The loan carries a 4 year term with a fixed interest rate of 7.75%. The facility is secured by a fixed first charge on the Company's Midwinter and Verger properties. This acquisition brings Ohio's gas production to over 5 mmcf/d and increases Ohio's undeveloped land base by 12 fold. Xeno is in the top 10 of Montana gas operators. The gas plant and huge acreage position is a base from which Ohio can expand its Montana operations. Current production is from Cretaceous sandstones at 800' and 1,700' depths. Along the trend Jurassic oil production exists at a depth of 3,000' as well as deeper Mississippian and Devonian objectives. In Canada, Ohio (50%) plans to rework 1 well and drill 2 new wells at Turin and participate in 2 other Alberta wells through the summer. In the Republic of Palau (Ohio 38%), the coring to collect samples for geochemical analysis commenced on June 22. Samples will be frozen and shipped to the Tulsa offices of Geomicrobial Technologies for analysis. A full report will be available in August.