SHNOS (Kazakhstan) and Hurricane are discussed an amalgamation conditions

/IRBIS, Oct.04, 99/ - According to REUTERS, which cites the Chairman of SHNOS Board Nurlan Bizakov, the SHNOS oil refinery in the south of Kazakhstan assumes, that the Canadian oil-extracting company Hurricane Kumkol' Munai will try to improve the conditions of merging with SHNOS. "Changes of the oil prices have encouraged creditors and management of Hurricane Hydrocarbons (parent company) and, most likely, they will try to improve the merging conditions. And, probably, it is fair ", - Bisakov said. In April of the current year SHNOS and Hurricane signed the protocol of intention to merge. It was supposed, that it will take place through the shares exchange, when the Hurricane would posses of 51% and SHNOS - 49%. In Canada Hurricane Hydrocarbons is under court protection against the creditors' claims. November 15 the company should grant to the creditors the plan of debt servicing and just after this date it will be possible to speak about more specific dates and conditions of merging. Financial and legal advisers of two companies are busy with amalgamation project. Bizakov considers that amalgamation is favorable as for Hurricane, which will have a guaranteed sales, as for SHNOS. Besides both companies can have additional reserves for cost reduction. SHNOS is supervised by the private KAZKOMMERTSBANK. Hurricane since 1996 in posession of Kumkol' oil deposit in the south of Kazakhstan.