heres some news-rc is going to do this tooArgonauts to purchase properties for $75.8-million
Argonauts Group Ltd AGW
Shares issued 33,388,519 May 8 2002 close $3.950
Thursday May 9 2002 News Release
Mr. Donald Archibald reports
CEQUEL ENERGY INC. ANNOUNCES PROPOSED $75.8 MILLION PROPERTY ...
Argonauts Group has entered into a letter of intent to purchase, pursuant to an arm's-length transaction, certain oil and gas producing properties located in northwest Alberta, and certain other minor properties located in Alberta for a purchase price of approximately $75.8-million, subject to adjustments. Closing of this acquisition is expected to occur mid-June with an effective date of June 1, 2002.
Production from the properties is comprised primarily of liquids and rich high-heat-content natural gas and includes the related facilities. Current production is estimated to be approximately 15.5 million cubic feet per day of natural gas and 595 barrels per day of oil and liquids. In addition, the properties contain approximately 149,000 net acres of undeveloped land.
Donald Archibald, the president and chief executive officer of Argonauts Group, stated that: "We are extremely pleased to acquire this portfolio of quality producing assets. This acquisition provides Cequel Group with a new core area and is an excellent geographic fit with Cequel's existing operations in Alberta."
Upon completion of the proposed acquisition, Argonauts Group will have a current average daily production volumes of over 5,800 barrels of oil per day (6:1), 73 per cent natural gas, comprised of approximately 25.8 million cubic feet per day of natural gas and 1,600 barrels per day of oil and natural-gas liquids; and an undeveloped land base of approximately 230,000 net acres.
Argonauts will finance the proposed acquisition through a combination of bank debt and a concurrent bought-deal private placement of 17,333,333 subscription receipts at a price of $3.75 per subscription receipt for total proceeds of $65-million. Each subscription receipt will represent the right to receive one Argonauts common share without further payment upon completion of the acquisition of the properties. The underwriting of the private placement will be led by Griffiths McBurney and Partners. Closing of the private placement is expected to occur on or about May 22, 2002. The proceeds of the private placement of subscription receipts will be held in trust and will be released from trust upon closing of the acquisition in June, 2002.
Completion of the acquisition of the properties and the private placement transaction will be subject to receipt of applicable regulatory approval including the acceptance of the TSX Venture Exchange and satisfaction of certain other customary conditions.
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