SCHEDULE 14A
(RULE 14A-l0l)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant /X/
Filed by a Party Other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement / / Confidential, for Use
Use of the Commission
Only (as permitted by
Rule 14a-6(e)(2))
/x/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-ll(c) or
Section 240.14a-12
Caspen Oil, Inc.
- ----------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
- ----------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the
Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules O-11(c)(1)(ii), l4a-6(i)(1),
or 14a-6(i)(2) or Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to
Exchange Act Rule 14a-6(i) (3).
/ / Fee computed on table below per Exchange Act Rules
14a-6(i)(4) and 0-11.
<PAGE>
(1) Title of each class of securities to which transaction
applies:
- ----------------------------------------------------------------
(2) Aggregate number of securities to which transaction
applies:
- ----------------------------------------------------------------
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
- ----------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- ----------------------------------------------------------------
(5) Total fee paid:
- ----------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided
by Exchange Act Rule 0-11(a)(2) and identify the filing for
which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or
Schedule and the date of its filing.
(1) Amount Previously Paid:
- ----------------------------------------------------------------
(2) Form, Schedule or Registration Statement No:
- ----------------------------------------------------------------
(3) Filing Party:
- ----------------------------------------------------------------
(4)Date Filed:
<PAGE>
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held April 3, 1997
To the Stockholders of Caspen Oil, Inc.:
NOTICE IS HEREBY GIVEN that the Annual Meeting of
Stockholders of Caspen Oil, Inc. ("Caspen" or the "Company")
will be held in the Hampden Room at the Holiday Inn - Lakewood,
7390 W. Hampden Avenue, Lakewood, Colorado 80227 on the 3rd day
of April, 1997, at 11:00 a.m. (local time) for the following
purposes:
1. To elect one (1) director to hold office until the
expiration of his term or until his successor has been
duly elected and has qualified; and
2. To transact any and all other business that may
properly come before the Annual Meeting or any
adjournment(s) thereof.
The Board of Directors has fixed the close of business on
February 18, 1997, as the record date (the "Record Date") for
determination of stockholders entitled to receive notice of, and
to vote at, such meeting or any adjournment(s) thereof. Only
stockholders of record at the close of business on the Record
Date are entitled to receive notice of and to vote at the Annual
Meeting. The stock transfer books will not be closed.
You are cordially invited to attend the meeting; HOWEVER,
WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING IN PERSON, YOU
ARE URGED PROMPTLY TO SIGN, DATE AND MAIL THE ENCLOSED FORM OF
PROXY SO THAT YOUR SHARES OF STOCK WILL BE REPRESENTED AND VOTED
AT THE SPECIAL MEETING. Your proxy will be returned to you if
you are present at the meeting and should request its return.
By Order of the Board of Directors
Kimberley J. Love
Secretary
March 10, 1997<PAGE>
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
PROXY STATEMENT
For
ANNUAL MEETING OF STOCKHOLDERS
To Be Held April 3, 1997
SOLICITATION AND REVOCABILITY OF PROXIES
The accompanying proxy is solicited by the Board of
Directors of Caspen Oil, Inc. ("Caspen" or the "Company"), to be
voted at the Annual Meeting of Stockholders of Caspen to be held
on April 3, 1997 (the "Annual Meeting"), at the time and place,
and for the purposes, set forth in the accompanying Notice of
Annual Meeting of Stockholders, and at any adjournment(s) of
that meeting. When proxies in the accompanying form are
properly executed and received, the shares represented thereby
will be voted at the Annual Meeting in accordance with the
directions noted thereon; if no directions are indicated, the
shares will be voted FOR the election of the director nominated
in this Proxy Statement and in the discretion of the persons
appointed as Proxies in the accompanying Form of Proxy with
respect to any other matter that is properly brought before the
meeting.
Each stockholder of Caspen has the unconditional right to
revoke the proxy at any time prior to its exercise, either in
person at the Annual Meeting or by written notice to Caspen
addressed as follows: Secretary, Caspen Oil, Inc., Irongate 3,
Suite 201, 777 S. Wadsworth Boulevard, Lakewood, Colorado 80226.
No revocation by written notice shall be effective unless such
notice has been received by the Secretary of Caspen prior to the
day of the Annual Meeting or by the inspector of elections at
the Annual Meeting.
The principal executive offices of Caspen are located at
Irongate 3, Suite 201, 777 Wadsworth Boulevard, Lakewood,
Colorado 80226. This Proxy Statement and the accompanying
Notice of Annual Meeting of Stockholders are being mailed to
Caspen's stockholders on or about March 10, 1997.
In addition to the solicitation of proxies by use of this
Proxy Statement, directors, officers, and regular employees of
Caspen may solicit the return of proxies either by mail,
personal interview, telephone, or telegraph. Officers and
employees of Caspen will not be compensated additionally for
their solicitation efforts, but they will be reimbursed for any
out-of-pocket expenses incurred. Brokerage houses and other
custodians, nominees, and fiduciaries will be requested, in
connection with the stock registered in their names, to forward
solicitation materials to the beneficial owners of such stock.
All costs of preparing, printing, assembling, and mailing the
Notice of Annual Meeting of Stockholders, this Proxy
Statement, the enclosed Form of Proxy, and any additional
materials, as well as the cost of forwarding solicitation
materials to the beneficial owners of stock and all other costs
of solicitation, will be borne by Caspen.
<PAGE>
PURPOSES OF THE MEETING
At the Annual Meeting, Caspen's stockholders will be asked
to consider and act upon the following matters:
1. To elect one (1) director to hold office until the
expiration of his term or until his successor has been
duly elected and has qualified; and
2. To transact any and all other business that may
properly come before the Annual Meeting or any
adjournment(s) thereof.
QUORUM AND VOTING
The identity of stockholders entitled to receive notice of
and to vote at the Annual Meeting, and the number of votes
allocated to each stockholder, was determined as of the close of
business on February 18, 1997 (the "Record Date"). On the
Record Date, the Company had issued and outstanding 21,073,306
shares of common stock, par value $.01 per share (the "Common
Shares"), 600,000 shares of its $1.80 Cumulative Convertible
Preferred Stock, par value $1.00 per share (the "Series A
Shares"), 300,000 shares of its Series C Preferred Stock, par
value $1.00 per share (the "Series C Shares") and 125,000 shares
of its Series E Preferred Stock, par value $1.00 per share (the
"Series E Shares").
Each stockholder of record of the Common Shares, Series A
Shares, Series C Shares and Series E Shares will be entitled to
one vote per share on each matter that is called to vote at the
Annual Meeting. All shares will vote as a single class on each
matter called to a vote.
The Articles of Incorporation of the Company do not provide
for cumulative voting rights.
The presence, in person or by proxy, of holders of the
majority of the issued and outstanding shares of the Common
Shares, the Series A Shares, the Series C Shares and the Series
E Shares is necessary to constitute a quorum at the Annual
Meeting. Proxies that are returned but are marked to abstain
from voting on any matter will be counted as present for
purposes of determining a quorum. Assuming the presence of a
quorum, the affirmative vote of the holders of a majority of the
Common Shares, the Series A Shares, the Series C Shares and the
Series E Shares represented at the Annual Meeting (and voting as
a single class) is required for the election of the director
nominee. Abstentions and proxies directing that the shares are
not to be voted will not be counted as a vote in favor of a
matter called for a vote.
<PAGE>
<TABLE>
PRINCIPAL STOCKHOLDERS AND STOCK OWNERSHIP OF MANAGEMENT
The following table provides information regarding the beneficial ownership of the
Common Shares, the Series A Shares, the Series C Shares and the Series E Shares as of the
Record Date by (i) each person known to Caspen to be the beneficial owner of more than 5%
of any class of the voting securities of Caspen; (ii) each director and nominee for
director of Caspen; (iii) each executive officer named in the Summary Compensation Table
presented below under the heading "Executive Compensation"; and (iv) all directors, the
nominee for director and all executive officers of Caspen as a group.
Amount Percent Percent
Beneficial Owner Title of Class Beneficially of of All
-------------- Owned* Class Classes
____________ _______ _______
<S> <C> <C> <C>
Mcorp Management . . . . . . . . Series A Shares 74,400(1) 12.4% **
P. O. Box 655415
Dallas, Texas 75265
Bradley Resources Co. . . . . . Series A Shares 38,600(2) 6.4% **
3581 SW Corporate Parkway
P.O. Box 1938
Palm City, Florida 34990-6938
Churchill U.S.A., Inc. . . . . . Series C Shares 300,000 100.0% 1.4%
Irongate 3, Suite 200
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226<PAGE>
Anthony J. Carroll . . . . . . . Common Shares 5,885,168(3) 27.1% 25.9%
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
Trans Energy, Inc. . . . . . . . Common Shares 4,522,308(4) 21.5% 20.5%
Irongate 3, Suite 200 Series A Shares 207,694 34.6% **%
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
Wendy A. Cribari . . . . . . . . Common Shares 5,022,340(5) 23.8% 22.7%
Irongate 3, Suite 200 Series C Shares 300,000(5) 100.0% 1.4%
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
FAI Insurance Group. . . . . . . Series E Shares 125,000 100.0% **
14th Floor 77 Pacific Highway
N. Sydney, Australia NSW 2060
John J. Crawford . . . . . . . . Common Shares 380,000(6) 1.8% 1.7%
Gary N. Davis . . . . . . . . . Common Shares 1,040,000(7) 4.7% 4.5%
Kimberley J. Love . . . . . . . Common Shares 350,000(6) 1.6% 1.5%
Directors and Officers
as a Group (4 Persons) . . . . . Common Shares 7,655,168(8) 35.2% 33.6%
_________________________
/TABLE
<PAGE>
* Unless otherwise indicated in the footnotes below, each
person has sole voting and dispositive power over the shares
indicated.
** Represents less than one percent.
(1) The Schedule 13D, dated November 6, 1983 and filed with the
Company by The Equitable Company of Texas (predecessor to
Mcorp Management), indicated that The Equitable Company of
Texas has sole voting and investment power with respect to
such shares.
(2) The Schedule 13D, dated January 30, 1990, and filed with
the Company by Bradley Resources Company, indicated that
Bradley Resources Company is a New York general partnership
of which George W. Holbrook, Jr. and James R. McGoogan are
the general partners and share the voting and dispositive
power with respect to such shares.
(3) Includes 660,000 Common Shares issuable pursuant to the
exercise of stock options of which 210,000 are exercisable
within 60 days of the Record Date.
(4) The entirety of these shares is held under a Voting Trust
Agreement with Wendy A. Cribari, President of Churchill
U.S.A., Inc. ("CUSA") and President, Treasurer and Director
of Trans Energy, Inc. Ms. Cribari serves as Trustee with
sole voting and dispositive power over Trans Energy's
shares. The terms of the Voting Trust Agreement run until
December 31, 2002.
(5) Ms. Cribari holds sole voting and dispositive power over
4,522,308 shares pursuant to a Voting Trust Agreement with
Trans Energy, Inc. See footnote (4) above. As President
of CUSA, Ms. Cribari shares voting and dispositive control
over the Series C Shares held of record by CUSA. Ms.
Cribari owns 500,032 shares individually.
(6) Includes 350,000 Common Shares issuable pursuant to the
exercise of stock options of which 87,500 are exercisable
within 60 days of the Record Date.
(7) Includes 1,040,000 Common Shares issuable pursuant to the
exercise of stock options of which 590,000 are exercisable
within 60 days of the Record Date.
(8) Includes 2,400,000 Common Shares issuable pursuant to the
exercise of stock options of which 975,000 are exercisable
within 60 days of the Record Date. See footnotes (3), (6),
and (7) above. <PAGE>
DIRECTORS AND EXECUTIVE OFFICERS
The Articles of Incorporation of Caspen provide for a Board
consisting of not fewer than three (3) and not more than fifteen
(15) members. The number of directors may be determined by
resolution of the Board at any meeting; presently, the Board has
set the number of directors at four (4). In addition, the
Bylaws of Caspen provide for division of the Board into four (4)
classes and require that the number of directors within each
distinct class must be as close to equal as possible. At the
present time, the Board is comprised of four classes of
directors with one director in each of the four classes. The
term of office for one class of directors expires each year,
with the term of the first class of directors expiring at the
Annual Meeting.
Unless otherwise directed in the enclosed Form of Proxy,
the persons appointed in the Form of Proxy intend to nominate
and vote the shares represented by such Proxy FOR the election
of the following nominee for the office of director of Caspen,
to serve as a director of the first class for four (4) years or
until his successor shall have been duly elected and qualified: <PAGE>
<TABLE>
Present Served as Year Term
Position Director as Director
Nominee Age with Caspen Since to Expire
------- --- ----------- ----- -----------
<S> <C> <C> <C> <C>
Anthony J. Carroll . . 60 Chairman of the Board, 1990 2000
President and Chief
Executive Officer
Although management does not contemplate that the above-named nominee will refuse or
be unable to accept or serve as a director of Caspen, the persons appointed in the
enclosed Form of Proxy intend, if the nominee becomes unavailable, to vote the shares
represented by the Proxy FOR the election of such other person as may be nominated or
designated by the Company's management, unless they are directed by the Form of Proxy to
do otherwise.
The following information is provided with respect to directors of the classes who
will continue to serve as directors of Caspen until the expiration of their terms on the
dates indicated:
Present Served as Year Term
Position Director as Director
Director Age with Caspen Since to Expire
-------- --- ----------- ----- -----------
Second Class
Gary N. Davis. . . . . 44 Chief Financial Officer 1990 1997
and Director
Third Class
Kimberley J. Love. . . 38 Secretary and Director 1990 1998
Fourth Class
John J. Crawford . . . 49 Director 1991 1999
/TABLE
<PAGE>
The following is a brief account of the business
experience, during the past five years, of each director, each
nominee for director and each executive officer of the Company.
Each of the persons identified below is a citizen of the United
States who has a business address at the Company.
Gary N. Davis has been Chief Financial Officer of Caspen
since July 1990 and a director of Caspen since June 1990.
Kimberley J. Love has been Secretary and a director of
Caspen since July 1990. Since May 1989, Mrs. Love has served as
President of KTP Energy, Inc. ("KTP"), a subsidiary of CUSA.
Mrs. Love has also served as Treasurer of KTP since January
1987. In April 1993, Mrs. Love was elected President of
Churchill Energy, Inc., a subsidiary of CUSA.
John J. Crawford has been a director of Caspen since
January 1991. Since 1993, Mr. Crawford has served as a grant
writer and grant administrator for the Denver Public Schools.
Since June 1984, Mr. Crawford has been a financial consultant to
both public and private companies in the Denver area.
Anthony J. Carroll has been Chairman of the Board,
President and Chief Executive Officer of Caspen since June 1990.
Other than Kimberley J. Love, Secretary of the Company, who
is the daughter of Anthony J. Carroll, Chairman of the Board,
President and Chief Executive Officer of the Company, no family
relationships exist between any of the executive officers and
directors of the Company.
The Board of Caspen has a standing audit committee on which
Kimberley J. Love and John J. Crawford currently sit. The
duties of the audit committee include making recommendations to
the Board concerning the hiring and dismissal of Caspen's
independent auditors; reviewing the completed audit with the
independent auditors and in connection with that review,
addressing any issues regarding the conduct of the audit,
accounting adjustments, recommendations for improving internal
controls and any other significant findings during the audit;
meeting periodically with management to discuss accounting and
financial controls; and initiating and supervising any special
investigations deemed necessary. During the 1996 fiscal year,
the audit committee held one (1) meeting.
The Board of Caspen currently does not have a standing
nominating, compensation or similar committee. Pursuant to the
Company's Bylaws, notice of a stockholder's intent to make a
nomination for the Board must be received by the Secretary of
the Company at least ninety (90) days before the annual meeting
of stockholders or within seven (7) days following the date on
which notice of a special meeting of stockholders is first given
to stockholders; in addition, the notice must contain certain
specified information.
During the 1996 fiscal year, the Board held one (1) annual
meeting and three (3) other meetings. On three (3) other
occasions the Board took action by unanimous written consent of
its members. Each of the members of the Board participated in
at least seventy-five percent (75%) of the aggregate number of
meetings (including unanimous consents ) of the Board and all
committees of the Board on which the director served during the
1996 fiscal year.<PAGE>
<TABLE>
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table provides information for fiscal 1996 concerning the total compensation paid by
Caspen and its wholly-owned subsidiary, Summit Overseas Exploration, Inc. ("Summit"), to Anthony J.
Carroll as Chairman of the Board, President and Chief Executive Officer of the Company, who is the only
executive officer of the Company whose annual compensation exceeded $100,000 in fiscal 1996.
Annual Long-Term Compensation
Compensation Awards
------------------- ----------------------
Year Restricted
Ended Stock Options/ All Other
Name July 31, Salary Bonus Other Awards SARs (#) Compensation
--------------- -------- ------ ----- ----- ---------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Anthony J. Carroll 1996 $144,000(1) $ -- $ -- $ -- $ -- $9,831(2)
Chairman of the Board, 1995 144,000 $ -- $ -- $ -- $ -- $6,386(2)
President and Chief 1994 144,000 $ -- $ -- $ -- $ -- $4,856(2)
Executive Officer
____________________
(1) Effective July 31, 1995, Mr. Carroll voluntarily deferred $5,000 per month of his salary. This
action does not affect the Company's contractual obligation relative to Mr. Carroll's employment
agreement.
(2) Reflects the premiums paid by the Company for life insurance policies with respect to Mr. Carroll,
the beneficiary of which is Mr. Carroll's estate.
</TABLE>
<PAGE>
On November 15, 1996, the Board of Directors authorized and
granted, pursuant to the 1993 Omnibus Employee Stock Option Plan,
the following options of the Company's common stock:
Anthony J. Carroll 600,000 shares
Gary N. Davis 600,000 shares
Kimberley J. Love 350,000 shares
John J. Crawford 350,000 shares
Each of the above options were, other than those granted to
Mr. Carroll, granted at an exercise price of $0.015, which was
the average between the bid and the asked price effective
November 15, 1996. Because Mr. Carroll is a 10% beneficial
shareholder, his exercise price is set at 110% of $0.015.
Twenty five percent of these options to each holder vested
immediately on November 15, 1996, an additional 25% will vest on
November 15, 1997, an additional 25% will vest on November 15,
1998 and the remaining 25% will vest on November 15, 1999.
In addition, also on November 15, 1996, the Board of
Directors authorized the issuance to Mr. Carroll of 3,000,000
shares of the Company's Common Shares at a purchase price of
$0.011 per share. The Board of Directors determined that the
purchase price was appropriate in light of the $0.015 average
between the bid and asked market price effective November 15,
1996, that the shares issued to Mr. Carroll would be "restricted
securities" under applicable securities laws and that Mr.
Carroll's ownership of the shares will be subject to contractual
restrictions. Mr. Carroll paid the purchase price for the shares
in the form of a secured promissory note payable to the Company
in the amount of $33,000, with interest payable at 7% per annum
and interest and principal being due on November 15, 1999. Mr.
Carroll will not be permitted to sell or encumber the shares
prior to November 15, 1999. If for any reason other than death
or disability, Mr. Carroll's employment with the Company is
terminated before November 15, 1999, then the shares will be
forfeited to the Company, the promissory note delivered in
payment of the shares will be canceled and no interest or
principal will be payable with respect to the note.
<PAGE>
<TABLE>
Aggregated Options/SAR Exercises in Last Fiscal Year and FY-End Option/SAR Values
The following table provides information with respect to Anthony J. Carroll concerning options
exercised during the fiscal year ended July 31, 1996, and unexercised options held as of July 31, 1996.
Value of
Number of Unexercised
Unexercised In-the-Money
Options/SARs at Options/SARs at
FY-End (#) FY-End ($)
Shares Acquired
Name on Value Realized ($) Exercisable/ Exercisable/
---- Exercise (#) ------------------ Unexercisable Unexercisable
------------ ------------- -------------
<S> <C> <C> <C> <C>
Anthony J. Carroll 0 0 60,000/0 0/0
</TABLE>
<PAGE>
Employment Agreements
Effective January 4, 1994, Mr. Carroll entered into an
employment agreement with Summit, which operates the oil and gas
activities of the Company, generally providing the following
terms: (1) an initial term of 24 months; (2) continued
employment as President and Chairman of the Board during that
time at an annual salary of $144,000; (3) the sole discretion of
Mr. Carroll to elect at any time during the initial term to
terminate the initial term of the agreement and to enter into an
extension term with the Company for 24 months after such
election, during which Mr. Carroll would be employed as President
of Summit Energy, (U.K.) Ltd., with primary responsibility for
managing and directing all of the interests and activities of the
Company in the North Sea and the United Kingdom; (4) an annual
salary during the extension term of $125,000, which would be
deemed earned on the first day of the extension term, but would
be paid in equal monthly installments; (5) the permissible
termination of the agreement by the Company in the case of
disability of Mr. Carroll (upon 180 days notice), or upon Mr.
Carroll's repeated and willful failure in bad faith to discharge
the duties assigned to him that are materially detrimental to the
business and affairs of the Company; and (6) if the Company
terminates the President for such failure, the Company will
continue to pay Mr. Carroll a salary of $125,000 per annum and
provide certain other benefits (including the use of an office
and an automobile, and payment for an executive assistant) for
the remainder of the agreement's term. The Board of Directors of
Summit approved the extension of the expiration date of the
employment agreement until May 1, 1999. Effective July 31, 1995,
Mr. Carroll voluntarily deferred $5,000 per month of his salary.
This action does not affect the Company's contractual obligation
relative to Mr. Carroll's employment agreement.
Compensation of Directors
Outside directors of the Company have historically been paid
the sum of $600 cash for their attendance at each meeting of the
Board of Caspen. Under the Company's Stock Bonus Plan (the
"Bonus Plan"), directors entitled to receive cash compensation
for attendance at meetings of the Board may elect to receive
instead Common Shares as remuneration. If, as allowed under the
terms of the Bonus Plan, a director elects to receive Common
Shares in lieu of cash, the recipient director would receive the
number of Common Shares having a value equal to the cash fees to
which he would otherwise be entitled.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Effective March 31, 1994, Summit entered into a Service and
Operations Agreement (the "Service Agreement") with CUSA. The
initial term of the Service Agreement expired on July 31, 1995,
at which time the Service Agreement was automatically renewed for
an additional one-year term and may be automatically renewed for
one additional one-year term. Under the terms of the Service
Agreement, CUSA is to provide financial and operational
management and general corporate legal services to the Company.
CUSA also provides the personnel and office space necessary for
the operations of the Company. The Service Agreement with CUSA
provides for the payment to CUSA of its actual costs plus ten
percent (revised to five percent effective June, 1995), (the
"Costs"). In the event that the Costs exceed the computed
average of the preceding three months' amount, the Company will
not be obligated to pay such excess. Any costs in excess of the
computed average of the preceding three months' amount will be
borne by CUSA. During fiscal 1996, the Company made payments to
CUSA pursuant to the Service Agreement in the amount of $299,353.
The Company believes that the amounts payable to CUSA pursuant to
the Service Agreement are less than what the Company would be
required to pay an independent third party to provide such
services.
CUSA owns 100% of the outstanding capital stock of Trans
Energy, Inc., which is a principal stockholder of the Company.
Kimberley J. Love, Secretary and Director of the Company, serves
as an executive officer in two subsidiaries of CUSA. See
"Directors and Executive Officers."
RELATIONSHIP WITH INDEPENDENT PUBLIC ACCOUNTANTS
BDO Seidman, LLP served as the Company's independent public
accountants during fiscal 1996 and will continue to serve as the
Company's independent public accountants during fiscal 1997. It
is expected that representatives of BDO Seidman, LLP will be
present at the Annual Meeting, that such representatives will
have a chance to make a statement if they so desire and that such
representatives will be available to respond to appropriate
questions.
OTHER BUSINESS
Management knows of no business other than that previously
disclosed that will be brought before the meeting. If, however,
any other matters are properly presented, it is the intention of
the persons named in the accompanying Form of Proxy (if
authorized to do so by the Proxy) to vote the shares as they deem
advisable.
PROPOSALS OF STOCKHOLDERS
All proposals by stockholders intended to be present at the
next Annual Meeting of Stockholders of Caspen must be received by
Caspen at its principal executive offices on or before November
10, 1997 for inclusion in Caspen's proxy statement relating to
that meeting.
ANNUAL REPORT
The Company's Annual Report on Form 10-KSB for the year
ended July 31, 1996 is being mailed to stockholders with this
Proxy Statement as the Annual Report to Stockholders. The Annual
Report is not to be regarded as proxy soliciting material.
By Order of the Board of Directors
Kimberley J. Love, Secretary
March 10, 1997
Lakewood, Colorado
<PAGE>
Common Shares
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF
DIRECTORS.
The undersigned hereby appoints Anthony J. Carroll, Gary N. Davis
and W. Alan Kailer, and each of them, as proxies, with the power
to appoint his substitute, and hereby authorizes each of them to
represent and vote, as designated below, all of the Common
Shares, par value $.01 per share, of Caspen Oil, Inc. (the
"Company") held of record by the undersigned at the close of
business on February 18, 1997 (the "Record Date"), at the Annual
Meeting of Stockholders to be held on April 3, 1997, or any
adjournment(s) thereof.
1. PROPOSAL TO ELECT AS DIRECTOR OF THE COMPANY THE FOLLOWING
PERSON, TO HOLD OFFICE UNTIL THE EXPIRATION OF HIS TERM
(AS SET FORTH OPPOSITE HIS NAME), OR UNTIL HIS SUCCESSOR HAS
BEEN DULY ELECTED AND HAS QUALIFIED.
[ ] FOR the nominee listed below.
[ ] WITHHOLD AUTHORITY to vote for nominee listed below.
Nominee and Year Term to Expire
Anthony J. Carroll 2000
FOR AGAINST ABSTAIN
2. IN THEIR DISCRETION, THE PROXIES
ARE AUTHORIZED TO VOTE UPON SUCH
OTHER BUSINESS AS MAY PROPERLY
COME BEFORE THE MEETING. [ ] [ ] [ ]
(please sign on other side)
(continued from front)
This proxy, when properly executed, will be voted in the
manner directed herein by the undersigned stockholder(s). IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR THE NOMINEE
IDENTIFIED IN PROPOSAL 1 AND AT THE DISCRETION OF THE PROXIES
WITH RESPECT TO ANY OTHER MATTER THAT IS PROPERLY BROUGHT BEFORE
THE MEETING.
Dated: ______________________, 1997
____________________________________
Signature
____________________________________
Signature if Held Jointly
Please execute this Proxy as your
name appears hereon. When shares are
held by joint tenants, both should
sign. When signing as attorney,
executor, administrator, trustee or
guardian, please give full title as
such. If a corporation, please sign
in full corporate name by the
president or other authorized
officer. PLEASE MARK, SIGN, DATE
AND RETURN THIS PROXY PROMPTLY USING
THE ENCLOSED ENVELOPE.
<PAGE>
Series A Preferred Shares
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF
DIRECTORS.
The undersigned hereby appoints Anthony J. Carroll, Gary N. Davis
and W. Alan Kailer, and each of them, as proxies, with the power
to appoint his substitute, and hereby authorizes each of them to
represent and vote, as designated below, all of the Series A
Preferred Shares, par value $1.00 per share, of Caspen Oil, Inc.
(the "Company") held of record by the undersigned at the close of
business on February 18, 1997 (the "Record Date"), at the Annual
Meeting of Stockholders to be held on April 3, 1997, or any
adjournment(s) thereof.
1. PROPOSAL TO ELECT AS DIRECTOR OF THE COMPANY THE FOLLOWING
PERSON, TO HOLD OFFICE UNTIL THE EXPIRATION OF HIS TERM (AS
SET FORTH OPPOSITE HIS NAME), OR UNTIL HIS SUCCESSOR HAS
BEEN DULY ELECTED AND HAS QUALIFIED.
[ ] FOR the nominee listed below.
[ ] WITHHOLD AUTHORITY to vote for nominee listed below.
Nominee and Year Term to Expire
Anthony J. Carroll 2000
FOR AGAINST ABSTAIN
2. IN THEIR DISCRETION, THE PROXIES
ARE AUTHORIZED TO VOTE UPON SUCH
OTHER BUSINESS AS MAY PROPERLY
COME BEFORE THE MEETING. [ ] [ ] [ ]
(please sign on other side)
(continued from front)
This proxy, when properly executed, will be voted in the
manner directed herein by the undersigned stockholder(s). IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR THE NOMINEE
IDENTIFIED IN PROPOSAL 1 AND AT THE DISCRETION OF THE PROXIES
WITH RESPECT TO ANY OTHER MATTER THAT IS PROPERLY BROUGHT BEFORE
THE MEETING.
Dated: ______________________, 1997
____________________________________
Signature
____________________________________
Signature if Held Jointly <PAGE>
Please execute this Proxy as your
name hereon. When shares are held by
joint tenants, both should sign.
When signing as attorney, executor,
administrator, trustee or guardian,
please give full title as such. If a
corporation, please sign in full
corporate name by the president or
other authorized officer. PLEASE
MARK, SIGN, DATE AND RETURN THIS
PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
<PAGE>
Series C Preferred Shares
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned hereby appoints Anthony J. Carroll, Gary N. Davis
and W. Alan Kailer, and each of them, as proxies, with the power
to appoint his substitute, and hereby authorizes each of them to
represent and vote, as designated below, all of the Series C
Preferred Shares, par value $1.00 per share, of Caspen Oil, Inc.
(the "Company") held of record by the undersigned at the close of
business on February 18, 1997 (the "Record Date"), at the Annual
Meeting of Stockholders to be held on April 3, 1997, or any
adjournment(s) thereof.
1. PROPOSAL TO ELECT AS DIRECTOR OF THE COMPANY THE FOLLOWING
PERSON, TO HOLD OFFICE UNTIL THE EXPIRATION OF HIS TERM (AS
SET FORTH OPPOSITE HIS NAME), OR UNTIL HIS SUCCESSOR HAS
BEEN DULY ELECTED AND HAS QUALIFIED.
FOR the nominee listed below.
WITHHOLD AUTHORITY to vote for nominee listed below.
Nominee and Year Term to Expire
Anthony J. Carroll 2000
FOR AGAINST ABSTAIN
2. IN THEIR DISCRETION, THE PROXIES
ARE AUTHORIZED TO VOTE UPON SUCH
OTHER BUSINESS AS MAY PROPERLY
COME BEFORE THE MEETING. [ ] [ ] [ ]
(please sign on other side)
(continued from front)
This proxy, when properly executed, will be voted in the
manner directed herein by the undersigned stockholder(s). IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR THE NOMINEE
IDENTIFIED IN PROPOSAL 1 AND AT THE DISCRETION OF THE PROXIES
WITH RESPECT TO ANY OTHER MATTER THAT IS PROPERLY BROUGHT BEFORE
THE MEETING.
Dated: ______________________, 1997
____________________________________
Signature
____________________________________
Signature if Held Jointly <PAGE>
Please execute this Proxy as your
name appears hereon. When shares
are held by joint tenants, both
should sign. When signing as
attorney, executor, administrator,
trustee or guardian, please give
full title as such. If a
corporation, please sign in full
corporate name by the president or
other authorized officer. PLEASE
MARK, SIGN, DATE AND RETURN THIS
PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE. <PAGE>
Series E Preferred Shares
CASPEN OIL, INC.
Irongate 3, Suite 201
777 S. Wadsworth Boulevard
Lakewood, Colorado 80226
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned hereby appoints Anthony J. Carroll, Gary N. Davis
and W. Alan Kailer, and each of them, as proxies, with the power
to appoint his substitute, and hereby authorizes each of them to
represent and vote, as designated below, all of the Series E
Preferred Shares, par value $1.00 per share, of Caspen Oil, Inc.
(the "Company") held of record by the undersigned at the close of
business on February 18, 1997 (the "Record Date"), at the Annual
Meeting of Stockholders to be held on April 3, 1997, or any
adjournment(s) thereof.
1. PROPOSAL TO ELECT AS DIRECTOR OF THE COMPANY THE FOLLOWING
PERSON, TO HOLD OFFICE UNTIL THE EXPIRATION OF HIS TERM
(AS SET FORTH OPPOSITE HIS NAME), OR UNTIL HIS SUCCESSOR HAS
BEEN DULY ELECTED AND HAS QUALIFIED.
[ ] FOR the nominee listed below.
[ ] WITHHOLD AUTHORITY to vote for nominee listed below.
Nominee and Year Term to Expire
Anthony J. Carroll 2000
FOR AGAINST ABSTAIN
2. IN THEIR DISCRETION, THE PROXIES
ARE AUTHORIZED TO VOTE UPON SUCH
OTHER BUSINESS AS MAY PROPERLY
COME BEFORE THE MEETING. [ ] [ ] [ ]
(please sign on other side)
(continued from front)
This proxy, when properly executed, will be voted in the
manner directed herein by the undersigned stockholder(s). IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR THE NOMINEE
IDENTIFIED IN PROPOSAL 1 AND AT THE DISCRETION OF THE PROXIES
WITH RESPECT TO ANY OTHER MATTER THAT IS PROPERLY BROUGHT BEFORE
THE MEETING.
Dated: ______________________, 1997
____________________________________
Signature
____________________________________
Signature if Held Jointly <PAGE>
Please execute this Proxy as your
name appears hereon. When shares
are held by joint tenants, both
should sign. When signing as
attorney, executor, administrator,
trustee or guardian, please give
full title as such. If a
corporation, please sign in full
corporate name by the president or
other authorized officer. PLEASE
MARK, SIGN, DATE AND RETURN THIS
PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
