Canadian Imperial Venture V.CQV.H

Excerpt from OTANS

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Another swig of Texas tea for CIVC? Speculation Canadian Imperial Venture Corporation is about to sign a complicated three-way deal that could see drilling resume in Western Newfoundland appears to be sparking heavy trade in the company's shares. During three trading days between Mar. 1-6, nearly seven million shares traded hands, driving the share price to 21.5 from 11.5 cents before dropping to 19 cents a share Monday. It's a far cry from five years ago, when the St. John's-based company's shares traded in the $2 range, but it may signify hope on the part of some investors that the company is finally staging a comeback. Since CIVC sought bankruptcy protection in November 2003, it has made several attempts to reverse its declining fortunes. Things went sour when it incurred big cost overruns following technical problems on an oil well on the Port au Port Peninsula. Creditors were owed more than $11 million. In the years since, CIVC made some deals to pay off creditors and resume exploration only to see them fall through. CIVC officials hope this latest attempt will stick. It would see CIVC acquiring privately-owned ENERGI Inc., a company touted as specializing in “creating value from stranded gas reserves, such as those at Port au Port.” ENERGI would then buy the exploration and production rights. The third leg of the plan would see Dublin-based Providence Resources buy into the deal as a part owner of the properties and operator of the exploration program. The deal was supposed to close Jan. 31, but CIVC granted the parties a 30-day extension. On Monday, vice-president Kirby Mercer said the company was a day or so away from making a public statement. “I guess the market has been sort of contemplating that the deals we've been working on are done,” Mercer said. “We're sort of close to pulling all of that off, which would be good news for us and Western Newfoundland.” CIVC had not issued a market statement up to The Express's deadline Tuesday. But closing the transactions are crucial for CIVC. Unless it resumes oil or gas production at Garden Hill by Aug. 13, the rights revert back to the Crown.