Capital Markets to merge Horizon with Aust, explorer

Press, 22 October 1986, Page 37

Capital Markets to merge Horizon with Aust, explorer

PA Wellington Capital Markets, Ltd, has reached agreement to merge its current oil exploration subsidiary Horizon Oil Exploration nl with Australian listed oil explorer, Cultus Resources nl. The merger will be affected by Horizon subscribing for a placement of 25 million ordinary shares in Cultus Resources at a price of 20c a share and 10 million contributory shares at a price of 1c a share.

This placement will be followed by a capital restructuring of Cultus Resources after which Horizon will hold about 50 per cent of the shares in the merged vehicle. On completion of the merger Cultus Resources will have cash resources in excess of sAust7.2 million. The joint chief executive of Capital Markets, Mr David Richwhite, said it was the directors’ intention to actively and aggressively continue in the oil and mining area.

The enlarged vehicle will have substantial interests not only in oil exploration but also gold, tin and other mineral exploration. . Cultus Resources has an experienced and successful management and administration team who will take over the day-to-day management of these activities for Capital Markets. The merged company will have a 67. per cent interest in the Brazilco Study Group which is currently doing extensive regional exploration studies

of Australian sedimentary basins. It is the company’s belief that there is considerable exploration potential in the various areas being studied.

“While the directors are aware that the current world market for oil is depressed it is their firm belief that this situation must change in the medium term. It is therefore advisable that as significant expertise has been developed in this industry that a continuing commitment to further exploration be maintained. It is important that the company position itself in this market to take maximum advantage of any future increases in oil

prices,” Mr Richwhite said.

“It is intended that the expanded Cultus Resources will, along with the increased activity in the oil and mining exploration areas, significantly expand its over-all commercial activities. These activities are likely to include further corporate acquisitions primarily in the exploration sector and will aggressively pursue and expand its involvement in the wide range of resource development particularly petroleum and gold. In line with this targeted expansion, various activities will be rationalised and existing assets sold.