CALGARY, Alberta, May 9 /PRNewswire-FirstCall/ -- The following was
released on behalf of the Board of Tracer Petroleum Corporation, by David
Robinson, President and CEO:
TRACER PETROLEUM CORPORATION ("Tracer" or the "Company") reports that the
private placement announced on February 1, 2002, has not been completed
because of market conditions and thus has been withdrawn. The Company has,
however, instead arranged a private placement of 5-year 10% convertible
debentures for proceeds of up to US$100,000. Some of the Company's
outstanding debt and current trade payables will be exchanged for debenture
interests. Any cash proceeds of the convertible debenture placement will be
used for working capital.
The debentures are convertible, at the option of the holders, into common
shares of the Company at the lesser of US$0.15 or 80% of the market price at
the time of conversion, subject to a floor price of US$0.10 per share. The
debenture holders will also receive 2-year share-purchase warrants for the
same number of common shares as the debentures are convertible into. The
warrants will be exercisable at US$0.20 per share.
Tracer and its partner in the Adzhiyap project in southwestern
Turkmenistan, Canneft Inc., are continuing active discussions with significant
financial and oil industry partners regarding joining Tracer and Canneft in
the development of the project. Further information will be released when
possible.
For further information on Canneft Inc.:
Mr. Henk Jelsma, President and CEO
Houston, TX
Ph. 281-374-7507
Fax. 281-374-7509
hjelsma@aol.com
This release contains "forward-looking statements" as per Section 21E of
the US Securities and Exchange Act of 1934, as amended. Although the Company
believes that the expectations reflected in such forward looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Management is currently reviewing many options and there
is no assurance that they will not make decisions other than those now
contemplated. The Company is subject to political risks and operational risks
identified in documents filed with the Securities and Exchange Commission,
including changing and depressed oil prices, unsuccessful drilling results,
change of government and political unrest in its main area of operations.
CONTACT: Janus Investor Relations, +1-403-693-0100, for Tracer Petroleum
Corporation; or Tracer Petroleum Corporation, +1-403-290-1676, or fax,
+1-403-264-5285, or tracerinfo@tracerpetroleum.com.
SOURCE Tracer Petroleum Corporation
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Related links:
http://www.tracerpetroleum.com
CONTACT:
Janus Investor Relations, +1-403-693-0100,
for Tracer Petroleum Corporation; or Tracer Petroleum
Corporation, +1-403-290-1676, or fax, +1-403-264-5285, or
tracerinfo@tracerpetroleum.com
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