TEXG -- Terax Energy, Inc. Com ($0.001)(New) COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
Westar Oil Inc to enter into share exchange agreement with Terax Energy
Jun 11, 2007 (M2 EQUITYBITES via COMTEX) -- Oil exploration and production company Terax Energy (OTC BB:TEXG.OB) said on 8 June that Westar Oil Inc has acquired the senior debt position held by third party creditors worth USD3m. Westar intends to convert the debt into Terax Energy shares at USD6.75 per share. In conjunction, Westar will enter into a share exchange agreement with Terax Energy. Westar shares will be valued at USD24.50 per share and Terax shares will be valued at USD6.75 per share effective for all shareholders of record as of 21 June 2007.
The new company will be named Westar Oil and Gas Inc. The new company is expected to have a net cash flow in excess of USD12m per year and reserves in excess of USD150m. The assets will consist of properties located in Texas, Nevada, Arkansas, Mississippi and Oklahoma.
Terax has also elected to extend its current leasehold interests as well as bring the wells located in Erath County into production. The expected net cash flow from the rework of six wells is in excess of USD750,000 per month.
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