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

To: Herb Duncan who wrote (11580)	7/7/1998 4:29:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Abacan Resources Announces Settlement and Restructuring ABACAN RESOURCE CORPORATION TSE SYMBOL: ABC NASDAQ SYMBOL: ABACF JULY 7, 1998 HOUSTON, TEXAS--Abacan Resource Corporation, (TSE: "ABC", NASDAQ: "ABACF"), announces that its wholly-owned subsidiary Liberty Technical Services, Ltd. ("Liberty") has reached a settlement agreement with its Nigerian partner Amni International Petroleum Development Company Limited ("Amni") respecting the IMA Field located on Nigerian Concession OML112 (formerly OPL469) and OPL237. Under this agreement, Amni and Liberty have agreed to restructure their joint venture relationship. Liberty will relinquish all rights and interests with respect to the "shallow" zones located in the IMA Field on OML112/OPL237. The "shallow" zones encompass all of Liberty's share of current production. In exchange Amni will (1) assume outstanding claims against Liberty (including trade claims) related to the IMA Field and (2) assume all lease obligations related to the service providers to the IMA Field. In addition, Amni will forgive its claims against Liberty and release to Liberty any interest in the Langley (described below). Liberty will retain a 10 percent working interest in the "deep IMA prospect" which was previously encountered by the IMA #9 well. Utilizing dedicated proceeds from certain insurance claims, Amni and Liberty expect to drill a well to test this prospect in the near future. Concurrent with its agreement with Amni, Liberty has exchanged the topside equipment on the Mobile Offshore Production Unit, the "Langley", in a transaction with Schlumberger Overseas S.A. and Total International Limited. Under the terms of the exchange, Liberty will convey the topside processing equipment on the Langely to Schlumberger in return for (1) the extinguishment of all debt to the Schlumberger Group and (2) a restructuring of the Total-Credit Suisse/First Boston loan (the "Loan") with a future credit thereon as described below. As restructured, the Loan in the approximate amount of $30,700,000 continues with Abacan and Schlumberger has agreed to dispose of the Langley with approximately 40 percent of the proceeds from such disposition to be applied against the outstanding principal balance on the Loan. The Loan will be due in 12 to 18 months. The first interest payment is due in six months with interest-only due thereafter until maturity. Abacan is pleased with the outcome of these extensive negotiations because it benefits all of Liberty's creditors by reducing Liberty's debt by $73,000,000, with additional future debt reduction to occur at the time of the disposition of the Langley. It also allows Abacan to better focus on the recently announced venture to develop a gas fired electrical power generation plant in the Republic of Benin and exploit its extensive inventory of exploration concessions in the Benin Basin.