Seahawk Acquires 95% of Discovery Oil

Seahawk Oil International Inc. of Newport Beach said it has acquired most of Discovery Oil Ltd. of Los Angeles for a total of $1.6 million in cash plus 300,000 shares of Seahawk common stock.

A company spokesman said that Seahawk, in partnership with a private institutional investor, purchased about 95% of Discovery, which in August filed for protection under Chapter 11 of the Bankruptcy Code. The spokesman said that Seahawk contributed $600,000 cash in addition to the stock, which is worth about $264,000, while the institutional investor, which he declined to identify, contributed $1 million cash.