Siboney to use $1 million from Cuban oil rights sale to pay debt

Friday, January 4, 2008
Siboney to use $1 million from Cuban oil rights sale to pay debt
St. Louis Business Journal - by Patrick L. Thimangu

After waiting for nearly 50 years, Siboney Corp., the Kirkwood-based
educational software company led by Tim Tegeler, has sold its oil
exploration rights in Cuba, which were seized by Fidel Castro's
communist takeover.

Siboney agreed Dec. 19 to sell the rights to Clarinbridge LLC for more
than $1 million. The rights cover about 4 million acres and are valued
at about $2.4 million by Siboney.

In a Dec. 19 filing with the Securities and Exchange Commission (SEC),
Siboney stated that it will use the proceeds from the sale of the oil
exploration rights to repay debt and for general corporate purposes.
Earnings statements filed with the SEC show Siboney had a bank revolving
loan of $1.4 million at the end of the third quarter.

Siboney's move comes nearly 50 years after Fidel Castro took power in
Cuba in the 1958 revolution and nationalized the assets of private and
foreign-owned companies in the Caribbean island nation a short while
later. Those assets included the oil exploration rights Siboney's
predecessor company, Siboney Caribbean Petroleum, had acquired when it
was founded in 1955 by the late Jerry Tegeler, who is Siboney Chairman
and CEO Tim Tegeler's father.

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