Settlements

BLACKLINE OIL CORPORATION [Agreed Stmt.]

BCSECCOM #:
Document Type:
Agreed Stmt.
Published Date:
1999-07-30
Effective Date:
1999-07-26
Details:


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF BLACKLINE OIL CORPORATION


Agreed Statement of Facts and Undertaking


The following agreement has been reached between Blackline Oil Corporation (the “Respondent”) and the Executive Director.

1. As the basis for the undertakings referred to in paragraph 2 of this agreement, the Respondent acknowledges the following facts as correct:
      1.1 the Issuer was incorporated under the Company Act, R.S.B.C. 1960, c. 67 on December 2, 1965, and is a reporting issuer under the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”);

      1.2 in January 1999, an article regarding the Respondent was printed in the Individual Investor magazine (the “Magazine”);

      1.3 the Magazine article was reviewed by the principals of the Respondent before its publication;

      1.4 in January 1999, the Respondent contracted with StockHouse Media Corporation to have the Magazine article posted on the Internet, and the respondent disseminated copies of the Magazine article to persons in British Columbia;

      1.5 the Magazine article contained statements:

      1.6 i) relating to the future value or price of the securities of the Respondent, such as, “Blackline Oil Corp’s revenues and earnings projected to grow exponentially as industry embraces innovative technology”, and, “Based on the company’s proven industry-leading technology, major market demand and exceptional revenue potential, Blackline Oil Corp. remains one of the industry’s premier growth issues, trading significantly discounted to market potential”, and, because the statements were disseminated by the Respondent, such statements are deemed to be made by the Respondent while engaging in investor relations activities or with the intention of effecting a trade in a security, contrary to subsection 50(1)(b) of the Act;

      1.7 ii) that the Respondent knew, or ought reasonably to know, were misrepresentations, such as, “Blackline, after several years and over $7 million in research and development, has initiated a new technological approach for oil recovery that promises to be one of the biggest breakthroughs in the history of the oil industry”, and, “Blackline, through a recent strategic alliance with industry-leading technology firm KeyTech Energy Inc., has successfully developed the world’s first cost-effective nitrogen-injection technology for increasing oil production from existing reservoirs previously considered depleted or declining”, and, “According to the Alberta Department of Energy, the average oil recovery rate using conventional techniques is 30%, leaving 70% of the oil in the ground. Blackline’s proven technology, can typically recover up to 70% of the remaining in situ resource”, and, because the statements were disseminated by the Respondent, such statements are deemed to be made by the Respondent while engaging in investor relations activities or with the intention of effecting a trade in a security, contrary to subsection 50(1)(d) of the Act;

      1.8 on January 15, 1999, the Respondent ceased disseminating the Magazine article and issued a news release that retracted and explained certain statements made in the Magazine article; and

      1.9 the Respondent has co-operated fully with the staff of the Commission in its investigation of the matters set out herein.

2. The Respondent undertakes to:
      2.1 permanently refrain from distributing the Magazine article;


      2.2 comply fully with the provisions of the Act and the Securities Rules, B.C. Reg. 194/97, from the date of this agreement; and

      2.3 pay the sum of $5,000 to the Commission, $1,000 of which represents the costs of the investigation and the remainder to the Investor Education Fund.

3. The Respondent waives any right it may have, or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with or incidental to this agreement.

DATED at Vancouver, British Columbia, on July 16, 1999.

“S. Morton” )
Witness Signature )
)
S. Morton ) “H.B. Hemsworth”
Witness Name (Please Print) ) Blackline Oil Corporation
) (Signing Authority)
7083 Beechwood St. Van B.C. )
Address )
)
Exec Asst )
Occupation )

DATED at Vancouver, British Columbia, on July 26, 1999.






Steve Wilson
Executive Director
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