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ENRON AFFILIATE AND QUEEN SAND RESOURCES, INC. CLOSE ACQUISITION
FOR IMMEDIATE RELEASE: Thursday, May 8, 1997
HOUSTON -- Enron Finance Corp. (EFC), a subsidiary of Enron Corp., and Queen Sand Resources, Inc. (QSR), a Dallas-based independent energy company, announced today that an EFC affiliate has acquired a 33 percent minority stake in QSR. Announced last month, the transaction closed on Tuesday of this week.
The EFC affiliate has purchased 9.6 million QSR preferred shares, convertible into 9.6 million QSR common shares, and other rights for a price of $5 million cash plus future contingent cash payments of up to $9.4 million.
"We are excited about the opportunity to be a part of such a rapidly growing company," said Gene Humphrey, president of EFC. "We look forward to QSR's ongoing success as a result of this transaction."
"Enron is recognized worldwide as an industry leader," said Ted Munden, president and CEO of QSR, "so we are delighted with Enron's investment in our company."
Munden added, "Since its start-up in 1994, QSR has built an impressive portfolio of oil and gas properties and development prospects with significant potential for higher production and profitability by pursuing an aggressive and focused acquisition strategy. As a result of acquisitions and ongoing operational improvements, QSR estimates it has proved reserves of approximately 11.3 million barrels of oil equivalent with an SEC value of more than $43 million."
QSR engages in the acquisition, development, exploitation and operation of crude oil and natural gas properties. QSR is traded on the over-the-counter market and quoted on the NASDAQ bulletin board under the ticker symbol, "QSRI."
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $16 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron is traded under the ticker symbol, "ENE."
For additional information please contact:
Terrie James - Enron Corp.
(713) 853-7727
Brian Greene - QSR
(613) 230-7211
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