Petrofac Resources proposes refinery company purchase

Petrofac Resources International Ltd. has signed a letter of intent with Kyrgoil Corp., Calgary, under which Petrofac will purchase 50% of Kyrgyz Petroleum Co., a unit of Kyrgoil and operator of an oil refinery in the Kyrgyz Republic.


Petrofac Resources International Ltd. has signed a letter of intent with Kyrgoil Corp., Calgary, under which Petrofac will purchase 50% of Kyrgyz Petroleum Co., a unit of Kyrgoil and operator of an oil refinery in the Kyrgyz Republic.

Petrofac, a major shareholder of Kyrgoil, is offering cash and proposes to cancel certain shares it holds in Kyrgoil in exchange for Kyrgoil's 50% interest in Kyrgyz Petroleum, Kyrgoil said in a statement.

In a related deal, Ontario-based software firm Objectools.com Ltd. has proposed a business combination with Kyrgoil, under which Objectools shareholders will exchange their Objectools shares for Kyrgoil common shares. Under the proposal, Objectools shareholders will hold about 88% of Kyrgoil's shares and existing Kyrgoil shareholders, about 12%.

Prior to the transaction, Kyrgoil holders will receive one new common share and one half of one warrant for every 25 common stock shares held. Each whole warrant will entitle the holder to purchase one Kyrgoil share at an exercise price of $5 (Can), subject to certain conditions.

Kyrgoil said completion of the transaction is subject to completion of a private placement by Objectools of at least $10 million, regulatory and shareholder approval, and other requirements.

Privately held, Objectools develops and operates an internet portal for the sale, licensing, rental, exchange, and transfer of object-oriented software and software components.

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