San
Joaquin to Acquire Pannonian Energy Inc.
and Announces Agreement for $7.2 million Financing
Denver,
Colorado - February 2, 2001 - San Joaquin Resources
Inc., (OTC BB: SJQR) announces today that it has signed
a definitive agreement to acquire Denver-based, Pannonian
Energy Inc., a privately held natural gas company.
Pannonian has an interest in over 30,000 acres in
the Uinta Basin located in Utah. Through a joint venture
with Phillips Petroleum Company, Pannonian will retain
20% of its interests in the earning wells being drilled
and completed by Phillips on Pannonian's lands. The
agreement allows Pannonian to participate with Phillips
for its retained interests in all future Mesaverde
Formation development. Pannonian also has up to 100%
interest in 200 additional Mesaverde Formation locations
and 75% to 100% interest in 130 shallower Wasatch
Formation development locations. Each well in the
Wasatch and Mesaverde Formations has potential recoverable
natural gas reserves of one to two billion cubic feet
(Bcf) and two to four Bcf, respectively.
In connection with the acquisition of Pannonian, San
Joaquin will issue up to 14,000,000 new shares of
common stock to the approximately 35 shareholders
of Pannonian. In addition, San Joaquin will change
its name to Gasco Energy, Inc., which is expected
to take effect following the closing of the Pannonian
acquisition.
As part of the process of the acquisition of Pannonian,
which is subject to approval by Pannonian's shareholders,
San Joaquin will appoint a new management team, consisting
of highly qualified individuals from Pannonian with
significant industry experience and a proven track
record in oil and gas exploration and development.
Marc Bruner will act as a new director and as chairman
of the board effective immediately. Mr. Bruner was
the founding chairman of the board of Ultra Petroleum,
a TSE & AMEX listed natural gas company with a
current market capitalization of $198,000,000. Mark
A. Erickson will act as president and a director.
Mr. Erickson was an officer and founding director
of Pennaco Energy, Inc. that has recently received
an acquisition offer exceeding $500 million by Marathon
Oil. Mr. Erickson is a registered petroleum engineer
with 17 years of diversified experience in business
development, finance, strategic planning, marketing,
project management and petroleum engineering. Carl
Stadelhofer, a partner with the firm Rinderkneckt,
Glaus & Stadelhofer, from Zurich, Switzerland,
will act as a new director. J. Timothy Bowes will
continue to act as a director.
In addition, the company announces that it has agreed
with Wet Coast Management Corp. to assist with a new
private placement of $7.2 million under Regulation
S of the Securities Act of 1933. In this connection,
San Joaquin has agreed to issue up to 2.4 million
shares of its common stock at $3.00 per share.
The company also has entered into a consulting agreement
with Wet Coast Management Corp. to provide investor
relations and financial services.
Certain
statements contained herein are "forward-looking"
statements (as such term is defined in the Private
Securities Reform Act of 1995). Because such statements
include risks and uncertainties, actual results may
differ materially from those expressed or implied
by such forward-looking statements.
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