St. Mary to acquire properties
  by: OilOnline
  Wednesday, December 18, 2002

St. Mary Land & Exploration Co. announced that through its wholly owned subsidiary, Nance Petroleum Corp., it had agreed to acquire oil and gas properties with an estimated 69 BCFE of proved reserves, 92% developed, from Flying J Oil & Gas Inc. and Big West Oil & Gas Inc. in exchange for the issuance of a total of 3.4 million restricted shares of St. Mary common stock.

In addition, St. Mary has agreed to make a non-recourse loan to Flying J and Big West of $72 million at Libor plus 2% for up to a 39-month period, which will be secured by a pledge of the shares of St. Mary stock issued to Flying J and Big West. During the 39-month loan period, Flying J and Big West can elect to put their shares of St. Mary stock to the Company for $72 million plus accrued interest on the loan, and St. Mary can elect to call the shares for $98 million.

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