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Gold/Mining/Energy : ARAKIS: HIGH RISK OIL PLAY (AKSEF) -- Ignore unavailable to you. Want to Upgrade?

To: BillyJoe McCallister who wrote (9149)	2/25/1999 6:22:00 PM
From: Greywolf	Respond to of 9164

The Arakis vision that became a nightmare By DREW HASSELBACK The Financial Post VANCOUVER -- The man slapped with the largest penalty in the history of the British Columbia Securities Commission said his mistakes were honest ones, motivated by a desire to feed the starving people of war-torn Sudan. James Terrence Alexander agreed to pay the BCSC $1.2-million, including $500,000 for costs, in a settlement whose details were released yesterday. He also agreed to a 20-year trading ban and a prohibition against acting as a director or officer of any issuer and from engaging in investor relations activities. The fine and bans stem from illegal trading related to a 1995 scheme to drill for oil in Sudan organized by Arakis Energy Corp. At the time, Mr. Alexander was president, chief executive and chairman of the company. An agreed statement of facts made public by the commission yesterday details several questionable trades in which Mr. Alexander caused Arakis to issue shares to an offshore trust set up for his benefit. On July 6 1995, Arakis issued a news release that said a company called Arab Group International was going to provide up to $750-million (US) in financing to the Sudanese project. Arakis shares rose to $26 from $23.25 on the Vancouver Stock Exchange on the news, even though neither Mr. Alexander nor the company were able to obtain independent information to establish whether Arab Group would come through with the cash. The deal ultimately fell through, taking Arakis shares with it. The company voluntarily delisted itself from the VSE on August 24, 1995. Trading on Nasdaq was suspended for a month. When it resumed, the stock continued to fall -- to about $3 (US) by yearend. In an interview yesterday, Mr. Alexander said his mistakes were the result of "serious, but honest, mistakes." "The reason that all this took place was the vision I had of Sudan turning into an exporting nation instead of an importing nation." The Sudanese project was sold to Talisman Energy Inc. of Calgary last October. Mr. Alexander said it will eventually produce 300,000 barrels of oil a day. "It's going to put more food in people's bellies and also medicine to keep them alive longer. I'm not a philanthropist but this is certainly one of the reasons we took this project on." Arakis has already been disciplined by the commission. Last May it was ordered to pay $250,000 in penalties and costs related to the Sudan project.