RE: Waiting on RussiaSome history on Oilexco and financing a large play.
Oilexco displayed in the past that it is capable of raising major
financing money and putting together very large deals. See
Below.
I think the "condition" for this old deal was sanctions being lifted
in Iraq. That obviously didn't happen in time for the deal to be
consummated but you can see that with the opening of a UK
subsidiary a deal similar to the one outlined below for the North
Sea is probably not far fetched. Has anyone on this thread ever
seen a possible financing out of Canaccord that had an upper
limit of $50 million and a $16.5 million dollar base?
------------------------------------
On April 23, 1999, Oilexco entered into a Joint Exploration
Agreement with Talisman Energy Inc. ("Talisman"). The
Company has committed, on a best efforts basis, to raise up to
$40 Million CAN, to participate in western Canadian based
exploration and development opportunities. Subject to certain
conditions being met, Oilexco has secured an investor to finance
Oilexco's obligations under the Joint Venture Agreement. Oilexco
believes it is close to satisfying those conditions.
-----------------------------------
Oilexco to start exploration and development program
Oilexco Inc OIL
Shares issued 18,015,981 Apr 26 close $0.23
Mon 26 Apr 99 News Release
Also Talisman Energy Inc (TLM)
Mr. Arthur Millholland reports
Oilexco has entered into a joint exploration agreement with
Talisman Energy Inc. Oilexco has committed to raise up to
$40-million, on a best efforts basis, to participate in an
exploration and development program in Western Canada.
Oilexco has been presented with a program, which may be
amended or replaced at any time by Talisman.
Activity under the agreement, which initially targets natural gas, is
expected to commence in the third quarter. Upon raising of the
requisite funds, Talisman will offer Oilexco prospects on a
farmin basis. Oilexco is pursuing a vehicle to finance its
obligations under the agreement, which are subject to financing,
and will announce arrangements once finalized.
----------------------
Mr. Arthur Millholland reviews the company
In April 1999, the company entered into a joint exploration
agreement with Talisman Energy. Oilexco has committed to
raise up to $40-million, on a best efforts basis, to participate in
Western Canada-based exploration and development
opportunities which initially target gas. Upon raising the
requisite money, the company will farm-in on Talisman projects,
which are to be determined.
The company has incorporated a wholly owned subsidiary,
Oilexco Drilling Fund Management to act as general partner for
the Oilexco 1999 Exploration Program, a limited partnership
which will farm-in on Oilexco's interests. DFM will endeavour to
raise $50-million to meet the company's obligations
to Talisman, which includes $40-million for farm-in
opportunities,$5-million for cost overruns on the projects and
$5-million for commissions, offering costs, organizational costs
and working capital. The benefits of this venture, once completed
and financed, will be as follows: one sixth carried interest on all
property earned during the term of the joint exploration
agreement at no cost to Oilexco; 10 per cent interest of the net
revenue interest earned by DFM from the partnership net
cash flow; an opportunity to participate in option wells on an
unpromoted basis; and a $30,000 per month management fee
from the partnership for not less than 24 months.
The company has undertaken to underwrite the costs of the
offering, if a minimum of $16.5-million is not raised by Aug. 4,
1999. Upon the first closing of the financing, the company will be
reimbursed for all out of pocket costs relating to the organization,
evaluation, marketing, financing, and promotion of the venture,
DFM and partnership.
----------------------
Oilexco plans $16.5-million limited partnership units offering
Oilexco Inc OIL
Shares issued 18,015,981 May 13 close $0.25
Thu 13 May 99 News Release
Mr. Arthur Millholland reports
Oilexco Inc.'s wholly owned subsidiary, Oilexco Drilling Fund
Management Limited, has engaged Canaccord Capital
Corporation to raise, on a best efforts basis, a minimum of
$16.5-million, up to a maximum of $50-million, by way of an
offering of limited partnership units in the Oilexco 1999
exploration program. The funds will be used for Oilexco's
obligations under its recently announced exploration joint
venture with Talisman Energy Inc.
The offering is subject to the receipt of all necessary regulatory
approval. Oilexco Drilling Fund will file a prospectus for the
offering in its primary jurisdiction of Alberta, and also in British
Columbia, Ontario,Quebec, Manitoba and Saskatchewan. The
Offering is expected to close on or before Aug. 4, 1999.
Arthur S. Millholland, president of Oilexco and DFM comments
that this opportunity will benefit Oilexco's existing shareholders,
as they will participate with the partnership in the exploration joint
venture without dilution to their current positions. In addition, Mr.
Millholland commented that the structure of the partnership
evolved from significant research into the issues surrounding
previous uses of similar investment vehicles, at a time when the
industry was faced with low commodity prices
and weak equity markets. Most importantly, Mr. Millholland
commented that the offering is intended to create value for all
stakeholders.
---------------------------------
Here are most of the oil fields in IRAQ and there production
before the war!!
FIELD ...........Recoverable Res............. Potential Peak
NAMES............( Billion Barrels )..............( barrels per day )
al-Ahdab1 ...................1.4........................90,000
Ain Zalah.....................?.........................EOR only
Gharraf.......................1.........................100,000
Halfaya......................2-5........................225,000
Hamrin........................?..........................80,000
Khormaia.....................1.5........................100,000
Luhais........................?..........................30,000
Majnoon.....................10-30.......................600,000
Mansuriyah...................9.5 TCF...................1 Bcf/d of gas
Nahr Umar....................6..........................440,000
Nasiriyah....................2...........................300,000
Norht Rumalia...............3-4..........................500,000
Rafidain.......................7...........................100,000
Ratawi.........................2...........................200,000
Suba...........................?...........................50,000
Tuba...........................1.5.........................180,000
Weat Qurna....................15...........................600,000
The Western Desert.......................................Unexplored
-----------------------------------
Oilexco receives extension from Talisman; CFO appointed
Oilexco Inc OIL
Shares issued 18,015,981 Aug 4 close $0.23
Fri 6 Aug 99 News Release
Mr. S. Arthur Mulholland reports
Oilexco has received an extension from Talisman Energy to
Sept. 17, 1999, to close financing for Oilexco's obligations under
Oilexco's exploration joint venture with Talisman Energy.
In addition the board of directors of Oilexco has appointed Brian
Ward, CFA, to the position of chief financial officer after accepting
the resignation of Dennis Kwan from his position of
vice-president, finance.The board of directors of Oilexco has also
elected Don Copeland to the position of chairman of Oilexco's
board of directors.
-----------------------------------