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

To: Kerm Yerman who wrote (11607)	7/6/1998 8:10:00 PM
From: Kerm Yerman	Respond to of 15196

MERGERS - ACQUISITIONS / Ridel Resources Ltd. acquireS Asia Pacific Energy Co. RIDEL RESOURCES ACQUIRES ASIA PACIFIC ENERGY CO. AND ITS MYANMAR OIL AND GAS CONTRACTS Date: 7/6/98 2:57:54 PM Stock Symbol: RDL Ridel Resources Ltd. today announced it has acquired Asia Pacific Energy Co. Ltd. (APEC) of Hong Kong, which holds contracts that allow the company to earn a share of profits from incremental production and exploration and development in three oil and gas fields in Myanmer (formerly Burma). The acquisition was completed for consideration of 15 million Ridel shares, at a deemed price of C$1 per share, to APEC shareholders. "The APEC acquisition places Ridel in a position to become a mid-sized oil producer within the next three years," said the company's President and Chief Executive Andrew Chinnick. "The fields have substantial proven oil reserves and tremendous potential for possible recoverable oil. The fields currently generate nearly one-third of Myanmar's oil production." "During the next six months, we will be rehabilitating hundreds of wells that have been under-developed or abandoned due to shortage of equipment and capital. We anticipate that Ridel will realize cash flow from production activities beginning in the first quarter of 1999." The acquisition followed the completion of an independent study by consulting firm Sproule International Limited of Calgary, whose report on two of the fields - Htaukshabin and Kanni - indicated proven and probable reserves of 14 million barrels of oil, with significant potential for additional barrels of recoverable oil. Ridel's own studies have indicated up to 110 million barrels of recoverable oil reserves at depths less than 6,000 feet, plus additional reserves deeper, and in the southern portion of the contract area. Sproule has assesses the contracts' total net present value - based on proven and probable reserves at US $21.7 million, and resource potential at US $ 20.7 million - on a fully risked basis, (at 10% discount rate and after tax). About Ridel Resources Ridel Resources Ltd. of Calgary is a junior oil and gas company focused on development and production opportunities in southeast Asia. Currently, Ridel has contracts that allow the company to earn a share of profits from three producing fields in Myanmar through development and exploration. Ridel is targeting future acquisitions to continue its growth in the Far East.