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Sequoia Oil & Gas Trust and Avery Resources Inc. Announce Closing of Financing and Joint Venture
Sequoia Oil & Gas Trust and Avery Resources Inc. Announce Closing of Financing and Joint Venture.
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\n\n\nSequoia Oil & Gas Trust\nTSX: SQE.UN\n\nAvery Resources Inc.\nTSXV: ARY\n\nCALGARY, Nov. 24 /CNW/ - Sequoia Oil & Gas Trust (\"Sequoia\") and Avery\nResources Inc. (\"Avery\") are pleased to announce the closing of Sequoia's\nsubscription for 16,800,000 Units of Avery (each Unit consisting of one share\nand one-half warrant) (the \"Subscription\") at a subscription price of $0.25\nper Unit, for total consideration of $4,200,000. Each whole warrant entitles\nSequoia to acquire one common share of Avery at a price of $0.50 per share for\na period of two years from closing. The Subscription results in Sequoia\nholding an aggregate of 16,800,000 common shares of Avery, representing\napproximately 44 percent basic (46 percent fully diluted) of the issued and\noutstanding common shares of Avery.\nThe consideration paid by Sequoia consists of a combination of property\nand cash. The property, located at Fox Creek in north-central Alberta and\nvalued at $3,023,000, is non-operated and contains four producing natural gas\nwells (sweet gas), covers two sections (1,280 acres) of developed lands, and\nwill provide Avery with cash flows from approximately 80 barrels of oil\nequivalent per day (\"boe/d\") of production. The balance of the subscription\nprice - $1,177,000 - was paid in cash.\nSequoia has also loaned to Avery a sum of $1,569,278, repayable on\ncompletion of an equity financing by Avery, but no later than March 1, 2006.\nInterest payable by Avery is at a rate of 7.5 percent per annum. The loan is\nsecured by a fixed-charge debenture, including security in favor of Sequoia\nover the Fox Creek property.\nThrough this transaction, Sequoia has earned the right to appoint four of\nAvery's seven Board members. Sequoia's nominees, appointed to Avery's Board of\nDirectors, are Messrs. Bradley Johnson, President and Chief Executive Officer\nof Sequoia Oil & Gas Trust; James Howe, President of Bragg Creek Financial\nConsultants Ltd., a private financial consulting corporation; Stephen Peacock,\nManaging Director and Partner of Mustang Capital Partners Inc.; and Ian\nTowers, President of Dolomite Energy Inc., a private oil and gas company. They\nwill join Messrs. David Little, Richard Edgar and John Carruthers on the\nBoard.\nCoincident with the Subscription, Sequoia and Avery have entered into an\nagreement pursuant ...