Great News!!Regent Ventures acquires more interest in McCallan Oil
Regent Ventures Ltd (C:REV)
Shares Issued 52,496,596
Last Close 6/27/2006 $0.41
Tuesday June 27 2006 - News Release
Mr. Ed Mueller reports
ACQUISITION OF ADDITIONAL INTEREST IN MCCALLAN
Regent Ventures Ltd. has negotiated the acquisition of an additional 22.5-per-cent interest in McCallan Oil & Gas Ltd., a private United Kingdom company, from Hans Dietmann of Vienna, Austria. McCallan holds a 51-per-cent interest in two joint operating agreements, one with respect to an oil and natural gas concession comprising 4,300 square kilometres in the Carpathian Mountains in Poland, and the other with respect to a coal bed methane gas concession comprising 115 square kilometres in the Upper Silesian basin of Poland.
Pursuant to the terms of the share purchase agreement, Regent will pay Mr. Dietmann $200,000 in cash and issue 1.3 million shares in the capital of Regent to him at closing. A total of 1.15 million of the shares to be issued will be held in escrow by the company until Mr. Dietmann formalizes his agreement with AAA Capital Energy AG to acquire an interest in McCallan and the first tranche of funds are advanced by AAA to McCallan, or McCallan enters into an agreement with a major energy company with respect to either of its resource interests. If neither event occurs within six months of closing, the escrowed shares will be cancelled.
Regent has also agreed to issue up to 11.7 million additional common shares to the vendor on the basis of 468,000 common shares for each oil, natural gas or coal bed methane gas well placed into commercial production by McCallan, to a maximum of 25 producing wells. Regent will not be required to contribute any capital to McCallan for the development of its interests, however, it will now have a 45-per-cent participating interest in any net income derived by McCallan from the development of the interests it holds.
Option
In addition to selling Regent an additional 22.5-per-cent interest in the shares of McCallan, Mr. Dietmann has granted Regent an option to acquire a further 6-per-cent interest in the shares of McCallan in the event that McCallan enters into an agreement with a major energy company with respect to one of its resource assets. This would reduce the capital required from AAA to develop the remaining resource of McCallan and, accordingly, reduce the interest to be acquired by AAA in McCallan. Pursuant to the agreement, Regent can acquire the further 6-per-cent interest in McCallan, to take its interest to 51 per cent, by immediately issuing the 11.7 million contingent shares to Mr. Dietmann rather than releasing them on the earn-in basis under the acquisition terms above.
© 2006 Canjex Publishing Ltd.