Archie's Corner

[Mr. Ed]

CNGG-
March 18, 2002 06:30:00 (ET)


LAFAYETTE, La., Mar 18, 2002 (BUSINESS WIRE) -- Cambridge Energy Corporation (OTCBB: CNGG), an oil & gas exploration and production company with producing properties in Louisiana, today announced the closing date for its acquisition of oil and gas properties in Western Texas is Thursday, March 21, 2002.

Under the terms of the acquisition, Cambridge will purchase the assets from Southwin Financial, Ltd. for $7,178,523 in Cambridge Class AA Preferred shares. These preferred shares are convertible into common stock of Cambridge at a conversion rate of $3.00 per share.

Perry West, Chairman and CEO of Cambridge Energy stated, "We are thrilled with the acquisition of this property which adds significantly to our asset base and expands our operations into West Texas, an expansion we believe will translate into significant revenue and profits for the company."

Michael Childers of Southwin Financial stated, "We are very excited about the closing of our first transaction with Cambridge. This closing marks the beginning of a planned series of acquisitions that we will be pursuing with Cambridge. We are committed to helping the company grow while preserving their capital structure. Our focus is on Cambridge's potential valuations after these acquisitions."

As previously announced, Cambridge entered into a definitive agreement for the acquisition of oil and gas properties in Western Texas with significant proven, probable, and exploratory reserves. The total value of proven reserves of this first part of the acquisition is $40,830,402.

The acquisition is the first transaction in an ongoing partnership with a well-established Texas oil and gas company, which will precipitate further proven reserve acquisition opportunities. This property represents a 50-well drilling program for Cambridge Energy Corporation on the proven Caballos structure. Discoveries and field developments by other companies in the area include Exxon, Tennaco, Shell, Unocal, Fina and Texas Pacific Oil Company.

This press release includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Acts of 1995. While these statements are made to convey to the public the Company's progress, business opportunities, and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the Company's periodic filings with the U.S. Securities and Exchange Commission.

CONTACT: Cambridge Energy Paul Lovito, 954/346-5799 ext. 11