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Show The National Enterprise , December 8 , 1976 Page two Minerals Engineering Finds Option to Buy Drug chain Stores Sold by Payless Buyer for Creede Complex OAKLAND, Calif. DENVER Minerals Engineering Co. (OTC 1.00, 1.50) said it has signed an option agreement under which Houston Oil & Minerals Corp. may purchase its silver, lead and zinc mine mill complex at Creede, Colo., its Comstock Lode leaseblock near Virginia City, Nevada, and certain undeveloped uranium claims in eastern Utah and western Colorado. The agreement grants Houston the option to acquire the Creede complex for $850,000 cash, subject to the retention by Minerals Engineering of a 20 percent carried net profits interest in the Houston entire property. must exercise the option no later than six months after approval of the transaction by of Mineral Engineering's shareholders. Minerals said Houston Oil & Minerals then would be obligated, under the agreement, to conduct a minimum $1.5 million exploration and development program on the property within two years. In addition, Houston has an option to acquire Minerals Engineerings interest in a partnership which holds the Comstock Lode lease block for $290,000 cash and a 10 percent carried net profits inter two-thir- ds e silver and est. Two gold ore bodies have been delineated on the Comstock property, according to Minerals president A. G. Foust. He said he expects Houston to move rapidly in evaluating the property. Foust added that if all approvals are obtained and if Houston exercises its option in full. Minerals will receive a low-grad- minimum of $1.3 million in cash, which would be used to effectively eliminate its long- term debt. Minerals Engineering, in addition to its Creede and Comstock properties, maintains an active joint venture exploration program for uranium in Colorado and Wyoming with Urangcsellschaft of West Germany, has an interest in an oil field undergoing secondary recovery operations in Texas, and ow ns a partial interest in a large iron ore reserve in Montana. The company has an option agreement with Homestake Mining Company on the Creede Formation, a separate silver property in the Creede area, which would entitle it to an additional $1.5 million in advance royalty payments over a four-yea- r period should Homestake elect to exercise its option in May of 1977. West Coast Sells Store; New Subsidiary Formed HONOLULU West Coast Vineyards, Inc. (OTC .375, .50) has announced the sale of its Red, White & Bleu Delicatessen in Los Gatos, Calif, for a total of $44,770. After deductions for accounts payable, the company received $22,325 in cash, and notes totaling $9,770, payable at the rate of $307.84 per month for three years at 2 8-1- percent interest. NEW DRILLING SCHEDULED IN EASTERN UTAH Among the new wells scheduled in Utah this week is a projected 18,000 foot well to be drilled by Mobil Oil Corporation in eastern Utah's Grand County, according to Carlton Stowe, Utah Geological & Mineral Survey specialist. No. C-- l McCormick-Federa- l, is about The Mobil deep-testw o miles west of the Cisco field where shallow oil production from depths of 1,000 feet was established in 1954. The towrn of Cisco is some six and a half miles to the east. There has been no deep drilling in this general vicinity. About 35 miles to the southwest in Grand County, Stowe said, Willard Pease Oil & Gas has scheduled the No. Federal-Skylin- e a mile south of Salt Wash field, northwest of Moab. Pease will drill the well to at least 8,500 feet for t. 1-- A testing of the Mississippian formation. In other statewide activity, two wells will be drilled by Great Basins Petroleum Co., Denver, in southeastern Uintah County's Roan Plateau area in the Book Cliffs region. The two exploratory tests. No.'s 1 and 2 Black Horse Canyon are 10 miles west of the Colarado state line, about four miles north of East Canyon field. Both wells are to be drilled to at least 8,000 feet. In southern Utah's Kane County, just east of the Mount Carmel Junction and southeast of Ordcrville, Houston Oil & Minerals Corporation plans to drill the No. 1 Federal, a Work is expected to scheduled 9,500 foot test well. commence shortly. In San Juan County, 20 miles southeast of Blanding, Oil Development Co. of Texas will drill the No. 1 to about 6,100 feet for tests of the Pickett Corral-FederAkah formation. Additional drill rig activity is planned in Grand County in the Cisco area. Vukasovich Drilling Co. of Grand Junction announces it will drill a 2,000 foot test well at the No. 7A and another at the No. 24A Lansdale. Both wells are to be started 41-1- al soon. An exploratory well will be drilled by Intermountain Natural Resources. Inc., Salt Lake City, in the general area at State and. Combined Gas & Oil Co.. Salt Lake the No. City, will drill a 1,750 foot test w ell in the Seibcr Nose vicinity near Cisco. Burton W. Hancock, San Jose, Calif, plans field area, scheduling further development in the Bar-location for his 60th well in the vicinity. Dale to West of Nielsen, president Coast, the firm realized a net According profit of approximately $22,777 from the transaction. "With expanded ment of a lawsuit Payless had brought against Daylin Inc., a Fear- - ing the current instability of the Canadian economy and Los Angeles based company that allegedly reneged on an agreement to sell its London drug operation to Payless. In making the announcement last week, Payless cited concern about the Canadian economy and said its funds can be put to use more productively in its U.S. speculation that the Canadian dollar might be devalued. Payless Drugstores, California (OTC 11.25, 11.75) has sold its option to purchase London Drugs Ltd., a Vancouver, B.C. drug store chain to H.J. Louie Ltd. of Canada. Payless had acquired the option in February in settle- - Equity Begins Drilling SALT LAKE CITY Equity Oil Co. (OTC 30.625, 31.125) has commenced drill- ing of a 25,500 foot wildcat in Pecos County, Texas at a location 21 miles southeast of Fort Stockton, twro and one quarter miles west of the Brock Inc. of Houston, which Equity holds a 47.1 with percent interest in the wrell until payout. Operator for the drilling venture is Gulf Oil Corp. which holds a 50 percent interest. Minor participations are held by other parties. Equity early this year gas field and six miles participated in the discovery north west of the Grey Ranch, of the Puckett North Strawn field. West Ellenburger-gas- . Detrital gas field also in Pecos with Equity County, some 26 miles south-th- e Participating in drilling of the No. 1 east of Fort Stockton. Emma Lou deep test are G.W. opera-tion- s, and the acquisition of additional stores, we felt that absentee ownership of this business on the mainland was a burden to the company, Nielsen said. "We also felt it was not economically feasible to retain the business." A wholly owned subsidiary of West Coast Vineyards has also been formed, Nielsen added, called Intercontinental Imports, Inc. The company plans to enter the wholesale import market to supply the company's stores, as w'ell as others, thinking it can purchase items for the company at a substantial discount by 50 Subscriptions $24.00 per year weekly by the National Enterprise PublishBldg., P.0. Boi 11771, Pioneer Station, The Notional Enterprise is published Inc., S00 Continental Company, ing Salt lake Gty, Utah 14147. (801) S33-0S5- Cents Per Copy lank 6 Second Class Postage Paid w Salt Lake City. Utah R. Georgs Gregarsen Publisher Alena E. Bentley Editor Ryan B. Poulton Business Manager buying directly from Hong Kong, Taiwan, and other for- Mary McMillan Gabor Dean Alsup eign countries. These items, Nielsen said, include gift and novelty items which the companys stores carry. Peter Harrison Operations Manager Staff Reporters HealthGarde 1M WEST FIFTH SOUTH SALT LAKE CITY 14101 (SOI) MEDICAL COMPUTER SYSTEMS AND RURAL HEALTH SERVICES S31-77- The computer has a greater potential in patient care than any other invention, including the stethoscope and the X-r-ay machine Mr. Ken Hanson American Medical News HEALTHGARDE CORPORATION Medical Computers for the Modern Hospital X X OUR NASDAQ SYMBOL IS HGRD |