June 28, 2005 08:35 ET

PEXCON, Inc. Announces Developments in TekOil & Gas Acquisition

FORT LAUDERDALE, FL -- (MARKET WIRE) -- June 28, 2005 -- PEXCON, Inc. (OTC: PXCN), an oil and gas exploration and development company, announces developments concerning the proposed acquisition of TekOil & Gas Corporation.

The acquisition was subject to several terms, including proper due diligence, agreement of financial terms, and attorney review. Upon completing this process, management of PEXCON has notified TekOil & Gas Corporation that the majority shareholder vote, held on June 26, 2005, did not approve the acquisition. This decision will allow TekOil to pursue their business plan in the oil and gas sector independently from PEXCON.

PEXCON, Inc. will resume its original business plan of acquiring working interests in properties that provide net cash flow. The company has had productive preliminary discussions with an institutional investor regarding funding targeted acquisitions, including resumed discussions with Cherokee Oil, and creating a timetable for the OTC-BB listing. The activities were previously halted as a result of the proposed TekOil & Gas acquisition.

Effective immediately, PEXCON has replaced the executive appointments made by TekOil & Gas with the original board of PEXCON, Inc., with Mr. Gerald Dunne serving as Chairman and CEO. Peter McGoldrick of Integrity IR Services, Inc. will continue to serve as the Investor Relations consultant.

As of June 27, 2005, the current outstanding common shares of PEXCON stock is approximately 72,120,000, of which a majority is owned or beneficially owned by management. The company currently has no debt and has very limited monthly cash needs. PEXCON management has no plans to alter the share structure in any significant fashion, and will not be performing a reverse split.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by Pexcon, Inc. may differ materially from these statements due to a number of factors. Pexcon, Inc. assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

Contact Information

  • Contact:
    PEXCON, Inc.
    Peter McGoldrick
    Phone: 516-825-6516
    Fax: 516-825-2254