Company Press Release
SOURCE: Continental Energy Corporation
Indonesian Acquisition Closed
VANCOUVER, B.C., July 14 /PRNewswire/ -- The following is being issued by Gary R. Schell, President of Continental Energy Corporation, on behalf of the Board of Directors:
Continental Energy Corporation (''Continental, or ''CEC'') (OTC Bulletin Board: CPPXF - news) is pleased to announce that the Company has received regulatory approval to close the acquisition of Apex (Bengara-II) Ltd. (''Apex''). The Company will acquire 100% of the shares of Apex whose sole asset is a 100% interest in a Production Sharing Contract (''PSC'') with Pertamina, the Indonesian state oil company. The PSC is located in the Tarakan Basin approximately 85% onshore and 15% offshore on the north-eastern part of the island of Kalimantan, Indonesia. The PSC covers approximately 1.2 million acres, much of which is located in the Bulungan River channel system.
The Company will issue to the shareholders of Apex 850,000 common shares of Continental and will pay a total of US$1,200,000, of which US$400,000 has been paid in cash and US$800,000 through the issuance of promissory notes. The Continental shares will be restricted from trading until June 30, 2000. There were no bonuses, finders' fees or commissions paid in connection with this transaction.
Continental received an evaluation dated May 1, 1999 of the Bengara II Block PSC area from Chapman Petroleum Engineering Ltd. (''Chapman'') of Calgary, Alberta. In their report, Chapman states:
''It is our conclusion that CEC is laying a firm foundation for a viable oil and gas production operation in the Bengara II Block, East Kalimantan, Indonesia. The presence of oil and gas have been proven by test production from Muara Makapan #1 and oil seeps in the southern part of the block. Geological and geophysical mapping show high potential for further oil and gas pools throughout the block.''
Because of the past hydrocarbon findings on this concession, along with the geological and geophysical indications to date, management is optimistic about the possibility of establishing commercial reserves on the Bengara II Block.
Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's Form 20-F reports filed with the S.E.C.
NOTE: The Vancouver Stock Exchange has neither approved nor disapproved the contents of this news release.
CONTACT: Mr. Gary R. Schell or Mr. Craig Doctor, 604-687-3434, or 888-556-3213, or fax, 604-687-3073, or cenergy@istar.ca, both of Continental Energy Corporation.
SOURCE: Continental Energy Corporation |
