Prospect Oil & Gas Management Ltd.
Cubacan contracts services form Prospect Oil & Gas Management Ltd., a company related by common management and controlled by a director of Cubacan for general and administrative, land, development and exploration services for a monthly fee of $nil. Prospect also provides, among other things, the services of several employees including that of the President. The total contract fees charged during the nine months ended September 30, 2001, total $nil. Other fees and reimbursable costs total $nil. These transactions are in the normal course of operations and are measured at the exchanged amount, which is the amount of consideration established and agreed to by the related parties.
As at September 30, 2001, Cubacan owed Prospect $440,179 as a result of cash advances and reimbursable costs which bear no interest and have no set terms of repayment. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to be the related parties.
CUBACAN EXPLORATION INC. ( "CCX")
ENDEAVOUR RESOURCES INC ("ERU")
- Cubacan Shares for Debt
Tier 2 Company
CDNX has accepted for filing the Company's proposal to issue
25,012,095 shares to settle outstanding debt for $2,501,289.48, as
follows:
Deemed Price
Creditor Amount Owing Per Share Number of
Shares
Stabeco Industries Inc. $195,855.88 $0.10 1,958,000
Wheatland Resources Ltd. $33,724.06 $0.10 337,000
Insider / Pro Group Participation:
Insider=Y /
Name Progroup=P # of Shares
Prospect Oil & Gas
Management Ltd. Y 4,401,790
Endeavour Resources Inc. Y 18,315,306
________________________________________
CALGARY, Aug. 10 /CNW/ - Cubacan Exploration Inc. (the "Corporation")
announces that it has entered into agreements with creditors to settle virtually all of its outstanding debt with the issuance of common shares. The Corporation anticipates issuing a total of 25,012,095 common shares at a value of $0.10 each. Of the settlement amounts, approximately 18% is with a private company half owned by Allan J. Kent, the President of the Corporation and approximately 73% to Endeavour Resources Inc. ("ERU" on CDNX), which provided funding to the Corporation over the past years. Allan J. Kent is a director
and CFO of Endeavour Resources Inc.
The private company half owned by Kent is Prospect Oil & Gas Management Ltd. Am
Note Endeavour’s total holdings in Cubacan now are
26,185,982 shares or 33.4%.
