NEWS!!!
Monday May 8, 9:30 am Eastern Time
Company Press Release
SOURCE: ADAIR INTERNATIONAL OIL & GAS, INC.
ADAIR INTERNATIONAL OIL AND GAS, INC. (AIGI) Gears Up for Major Projects For 2000 Including Yemen Exploration and Power Plants
HOUSTON, May 8 /PRNewswire/ -- The appraisal of PARTNERS IN EXPLORATION (PIE) was completed by HILL VALUATION GROUP, LLC. with an appraised value of $22.8 million USD. ``This acquisition with the tangible and intangible assets that PARTNERS IN EXPLORATION (PIE) brought to ADAIR (OTC Bulletin Board: AIGI - news) was very instrumental in ADAIR Yemen Exploration being selected by its partner, OCCIDENTAL & SABA to be the operator during the exploration phase for Block 20, Republic of Yemen,'' stated John W. Adair, Chairman.
Block 20, which contains approximately 500,000 acres, is located in the heart of the prolific production (currently 160,000 barrels of oil per day) operated by YEMEN HUNT OIL COMPANY. Cumulative production from this area is projected to approach 1.0 billion barrels by the end of 2005. The pipelines and export facilities already in place afford the opportunity to bring any newly discovered oil in Block 20 to market within short time frames and at minimal cost. ADAIR believes that the block could contain up to 340 million barrels of recoverable reserves.
ADAIR has been named the operator during the exploration phase because of its comprehensive knowledge and experience in the block. OCCIDENTAL, with its worldwide expertise in production and development, will assume the role of operator after discovery of commercial reserves. Mr. Richard G. Boyce, President of ADAIR EXPLORATION, INC. formerly PARTNERS IN EXPLORATION (PIE) has extensive experience in Yemen and was previously Exploration Manager for YEMEN HUNT OIL COMPANY. Mr. Richard G. Boyce will head the exploration phase.
ADAIR has posted the $400,000 USD LETTER OF CREDIT for the signature bonus with the Ministry of Oil in Yemen and anticipates that the Production Sharing Agreement (PSA) will be ratified within four (4) weeks. Upon ratification the $8.3 million USD LETTER OF CREDIT is ready to be posted for the agreed to work program for the first phase of exploration.
ADAIR intends to implement an aggressive commitment by the group to utilize ``state of the art'' oil and gas exploration technology. Work planned includes acquisition of 3D seismic focused on the six prospects currently mapped with existing 2D seismic data, followed by the drilling of two (2) exploratory wells in the first exploration period. ``The seismic work will begin immediately upon the ratification of the Agreement by the Yemen government with initial drilling anticipated to begin shortly thereafter,'' stated Mr. Richard G. Boyce, President of ADAIR EXPLORATION, INC.
ADAIR also recently engaged a major financial house to raise capital for acquisitions within the Continental United States. ``We have laid the ground work for a substantial independent oil and gas company with our current projects under development and have no bank debt. ADAIR feels it is now time to bring capital into the company that will be used for equity to acquire cash producing properties and possibly a stock buy back,'' stated John W. Adair, Chairman.
The 600 MW natural gas fired power plant to be located in Southern California continues to develop on a very positive course with ADAIR currently in the process of developing a number of other sites in the Continental United States.
This new release contains forward looking statements within the meaning of Securities Litigation Reform Act that involves risk and uncertainties, including exploration, development, operational and marketing and implementation risks, and other facts described from time to time in the company's public available SEC reports which could cause results to differ materially.
SOURCE: ADAIR INTERNATIONAL OIL & GAS, INC.
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