SOURCE: Tekoil & Gas Corporation/PEXCON, Inc.

June 29, 2005 11:45 ET

Tekoil & Gas Corporation/PEXCON, Inc. Announce Correction to Erroneous Acquisition Rescission

THE WOODLANDS, TX -- (MARKET WIRE) -- June 29, 2005 -- Tekoil & Gas Corporation/PEXCON, Inc. (OTC: PXCN), an oil and gas exploration and production company, is announcing the retraction of a press release dated June 28, 2005 by Gerald M. Dunne, erroneously rescinding the Acquisition Agreement between Tekoil and Gas Corporation and Pexcon, Inc.

We wish to advise that Mr. Dunne's press release issued June 28, 2005 stating that the shareholders of Pexcon have rescinded the Tekoil acquisition is completely without merit. No authorized meeting of the shareholders has been held regarding the matter, and the Acquisition Agreement remains in full force and effect. Tekoil continues to utilize the services of its legal counsel Baker and Hostetler, LLP to carry out the transaction, which is moving towards closing on or before July 31, 2005.

The acceptance by Pexcon's Board of Directors of Mr. Dunne's resignation as an officer and director on May 31, 2005 is irrevocable. At this juncture, Mr. Dunne's only affiliation with Pexcon is that of a minority shareholder. Any reliance on representations made by Mr. Dunne regarding his authority to act for or on behalf of Pexcon is done at the public's own risk. Pexcon's current management team is as follows: Chief Executive Officer and Chairman of the Board, Mr. Mark S. Western; President, Mr. Frank Clear; Executive Vice President, Mr. Eric Ottens; and Chief Financial Officer, Mr. Gerald Goodman. The entire Board of Directors of Pexcon is comprised of Mr. Western, Mr. Clear and Mr. Goodman.

We regret the inconvenience and uncertainty Mr. Dunne has created to the shareholders and the additional legal costs thereto. We at Tekoil remain committed to moving forward as planned, to adding shareholder value and through our legal counsel, guarding against any future disruption by Mr. Dunne. Any questions regarding this or any other issue should be directed to Mr. Eric Ottens at erico@tekoil.com.

About Tekoil & Gas Corporation/PEXCON, Inc:

Houston based Tekoil & Gas Corporation/PEXCON, Inc., is a technology driven, oil and gas exploration and Production Company that utilizes advanced production technologies. The company is focused on the development, acquisition, stimulation, rehabilitation, and asset improvement of small to medium-sized oil and gas fields throughout the North American Continent. The combination of energy fuel reserves and advanced yield technologies, are anticipated to generate value for Tekoil and its stakeholders, as the company targets above average growth in the 21st century energy sector. Additional news and information will be made available on the new Tekoil website at www.tekoil.com, and through further press releases as acquisitions and development projects are executed.

Forward-Looking Statements:

This news release may contain certain forward-looking statements, including declarations regarding Tekoil/PEXCON and its/their subsidiaries' expectations, intentions, strategies and beliefs regarding the future within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements contained herein are based upon information available to Tekoil/PEXCON management as at the date hereof and actual results may vary based upon future events, both within and without the control of Tekoil/PEXCON's management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that additional acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, governmental regulations and other factors.

Contact Information

  • Mr. Eric Ottens
    Executive VP
    Tekoil & Gas Corporation
    Email Contact.