Drucker's Sale of West Gharib 20% Completed
Drucker's Sale of West Gharib 20% Completed
Business Editors
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 31, 2002--The
Board of Directors of Drucker Inc. (NASDAQ OTC-BB: DKIN) ("Drucker" or
the "Company") wishes to announce that the Company has completed the
sale of its wholly-owned subsidiary Drucker Petroleum Inc. to
Tanganyika Oil Company Ltd. The disposition include the Company's 20%
in the West Gharib, Gulf Basin in Egypt. The Company has received
US$250,000 and securities of Tanganyika Oil Company Ltd. which consist
of 200,000 common shares at a deemed share price of CDN$0.50 per share
and 800,000 special warrants convertible at no cost into 800,000
common shares also at a deemed share price of CDN$0.50 per share.
Before November 1, 2002, Drucker may cancel the special warrants and
Tanganyika Oil shall pay US$250,000 to Drucker. All necessary
regulatory approval has been received.
In exchanging a cash settlement and securities of Tanganyika Oil
Company Ltd. for the Company's 20% interest in West Gharib, Drucker
has become a shareholder of Tanganyika and this should mitigate our
exploration risks and future cash calls while retaining exposure to
West Gharib, Egypt. Hana-9, the first well of the current three-well
exploration program on the onshore West Gharib Block, was successfully
drilled within the Hana field to a total depth of 6,550 feet, ending
in the Middle Rudeis sands. The well penetrated the targeted Upper
Rudeis sands just below the oil-water contact. However, the well
encountered 45 feet of net oil pay in the upper Kareem reservoir,
further extending the Hana field to the west. The well was completed
as a Kareem producer and put on production in February 2002 at an
initial rate of 800 barrel of oil per day (b/d).
The second well, Hana South-1, was drilled reaching a total depth
of 5,500 feet. The Rudeis target in this well was encountered just
below the oil-water contact. However, the well encountered a new
separate reservoir in the upper Kareem formation. On testing, using a
down-hole jet pump, the well flowed 1,800 b/d and after a cement
squeeze operation, the well was re-perforated and flow tested
approximately 100 b/d of 13.2 degrees API oil with significant
quantities of water using a down-hole hydraulic jet pump. A
traditional beam pump will be employed to carry out further well
performance evaluations.
The third well, Farag-1, spudded in mid-March 2002 and is testing
a new structure located 12 kilometers (7 1/2 miles) northeast of the
Hana field. The well is targeting the Miocene Upper Rudeis as well as
the deep Nubia reservoir. There are several offshore giant oilfields
with Nubia reservoir in Gulf of Suez Basin (such as July oilfield with
1.3 billion barrels of Original Oil in Place) but they are expensive
to drill. The well has reached its target depth of 10,507 feet and
logging of potential payzones shall commence.
Besides our interest in Tanganyika Oil, the Company plans to seek
other investment opportunities. The Company also may buy back its own
stock from time to time at market prices with no specificity.
Any forward-looking statement in this press release is made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that actual
results may differ substantially from such forward-looking statements.
Forward-looking statements involve risks and uncertainties including,
but not limited to, economical and political factors, fluctuations in
international and local oil prices, as well as the inherent risks of
exploring for oil and gas. Drucker disclaims any obligation to update
any such factors or to publicly announce results of any revision to
the forward-looking statements contained herein to reflect future
events or developments.
ON BEHALF OF THE BOARD OF DIRECTORS
(Signed)
Gerry Runolfson, President
--30--cee/cgo*
CONTACT: Drucker Inc.
Gerry Runolfson, 604/681-4421
Fax: 604/681-4355
Ernest Cheung, 604/689-4407
Fax: 604/408-8515
investors@drucker-inc.com
URL: www.drucker-inc.com |
