Apr 01, 2004
International Frontier Acquires Two Properties In Alberta To Begin Testing Sidox(tm)
CALGARY, AB, April 1, 2004 - International Frontier Resources (TSX-V:IFR) announces that the Company has agreed to purchase two operated properties in southern Alberta. The first property in the Brooks area consists of a 75% working interest in six producing oil wells, three water disposal wells, three shut-in wells and related oil battery facilities. The Brooks property was purchased for a cash consideration of $881,000. Pursuant to the sale and purchase agreement dated March 31, 2004, closing is subject to industry standard due diligence being completed on or before the closing date of April 27th, 2004. Current production from the property is 50 BOPD.
In the Ferguson area of southern Alberta, the Company has agreed to buy a 100% interest in two producing oil wells, one suspended oil well, one water source well, one water injection well and related facilities and equipment for a cash consideration of $75,000. A letter of intent dated March 16, 2004 has been executed; a sale and purchase agreement is currently being finalized with closing scheduled on or before April 30th, 2004. The property currently produces 11 BOPD.
The two properties provide a platform to test SIDOX(tm), a patented oil production enhancement technology that IFR controls through their wholly owned subsidiary Sidox Chemicals Canada Ltd. The Company plans to commence a SIDOX(tm) pilot project on the properties in the second quarter.
To finance the production acquisitions, the Company plans to issue up to $1,000,000 in convertible redeemable debentures. The terms of the debentures are; four year term, 9.5% interest rate, convertible into common shares in year 1 at $0.60, year 2 at $0.65, year 3 at $0.70 and year 4 at $0.75. The debentures will carry a floating charge over the assets of the Company, and can be redeemed by the Company for face value plus interest. Holders of the debenture have 30 days from date of redemption notice to either convert into common shares at the annual share price conversion rate or elect to have the debenture redeemed. Directors and management will participate for a minimum fifty percent (50%) of the debenture issue. The issuance of the Debenture is subject to TSX Venture Exchange approval.
Subject to TSX Venture Exchange approval the Company will also grant 200,000 stock options at a price of $0.45 per share exercisable for a five year period.
For additional information visit the Company's website at www.internationalfrontier.com or contact:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This news release is not intended for distribution to US news wire services or for dissemination in the United States and does not constitute an offer of the securities described herein.
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