Lexico Resources International Reaches Agreement to Acquire Additional Assets in Natural Buttes Gas Field
ENGLEWOOD, CO (March 24) BUSINESS WIRE -March 24, 1999--
Assets Estimated At Approximately $160 Million
The Board of Directors of Lexico Resources International Inc. (OTC: BB: LXXI) announced today that it has reached an agreement to acquire substantial additional assets in the Natural Buttes gas fields, located in the Uintah Basin, Utah.
The Company presently owns 75 percent working interest in the deep operating rights on 4,000 acres in the field. Under the terms of the acquisition, Lexico will acquire the remaining interest in the field that it does not already own. Additionally, Lexico will acquire a working interest in 50 percent of the deep operating rights (earned but not issued) on approximately 8,000 acres, also in the Natural Buttes field.
The additional assets are being acquired from Natural Buttes Gas Corp., a company that is partially owned by controlling shareholders of Lexico Energy Exploration, Inc., the parent company of Lexico Resources International. Lex Dolton, Chief Executive Officer of Lexico Resources, is contributing 5,000,000 shares of his personal stock in LXXI to effect the transaction.
Current engineering reports value the assets being acquired by Lexico Resources at approximately $160,000,000.
Mr. Dolton stated, "The acquisition of these additional assets brings tremendous value to the Company's shareholders. My contribution of 5,000,000 shares to perfect the stock swap with Natural Buttes Gas Corp. is a reflection of my belief in, and commitment to, making Lexico Resources a success."
Lexico Resources, based in Englewood, Colorado, and founded in 1987, is a natural gas and oil company. The Company has secured rights to develop certain natural gas properties in the Uintah Basin of Utah, and owns 50 percent of United Stratum AUS. Pty., an Australian Company with interests in oil and gas concession in the Pacific Rim. Except for the historical information contained herein, the matters discussed are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as quarterly fluctuations in operating results, the timely availability of new products, market acceptance of the company's products, the impacts of competitive products and pricing, government regulation of the company's products and other risks and uncertainties set forth in the company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein. This release, and prior releases, are available on the KCSA Worldwide website at www.kcsa.com
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CONTACT: Lexico Resources International Corporation, Englewood
L. Lex Dolton, Chairman
303/792-0416
or
INVESTOR CONTACT:
KCSA Worldwide
Joseph A. Mansi/Robert Giordano
212/682-6300 ext. 205/289
KEYWORD: COLORADO
INDUSTRY KEYWORD: OIL/GAS UTILITIES ENERGY MERGERS/ACQ Today's News
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