NEWS
ADAIR INTERNATIONAL OIL AND GAS, INC. (AIGI) Signs Oil Exploration Agreement With Yemen Ministry of Oil
HOUSTON, Nov. 2 /PRNewswire/ -- Mr. Jalal Alghani, Vice-Chairman of ADAIR INTERNATIONAL OIL AND GAS, INC. (OTC Bulletin Board: AIGI - news) has signed a MEMORANDUM OF UNDERSTANDING with the Ministry of Oil and Mineral Resources (MOMR), Republic of YEMEN to explore for oil on Block 20. Block 20 consists of approximately 1/2 million acres and was one of the most sought after areas in the Middle East. The area offsets the YEMEN HUNT Marib Block 18 which produces approximately 160,000 barrels of oil per day and has approximately 800 million barrels of reserves. Canadian Occidental is also active in YEMEN Oil Exploration and has over 200,000 barrels per day of production from the Masila Block.
The agreement was also signed by Mr. Richard G. Boyce, Vice-President of PARTNERS OF EXPLORATION (PIE) of Dallas, Texas. Mr. Boyce, a geophysicist, has extensive exploration experience in Yemen and was formally the Exploration Manager for YEMEN HUNT. ADAIR and PARTNERS IN EXPLORATION are equal partners in the exploration venture.
The signing of this agreement is the culmination of over 24 months of extensive geological evaluation of the area by an experienced team of geophysicists and the block is projected to have a minimum of 50 to 100 million barrels of oil with the target production being 50,000 to 75,000 barrels of oil per day. ADAIR will operate the block and a major industry company has been identified as a potential partner for the area.
As per the MEMORANDUM OF UNDERSTANDING, ADAIR/PIE agreed to acquire, process and interpret additional seismic, drill two exploratory wells, and spend a minimum of $16.8 million USD during the two exploratory periods.
ADAIR is also developing a Sugar Refinery and electrical co-generation plant to be constructed near Aden, Republic of Yemen with a capital cost of approximately $50 million USD. ''Yemen is one of our target areas to invest in the Middle East with tremendous investment potential and we are very enthusiastic about the exploration potential of our recently signed area,'' stated John W. Adair, Chairman. YEMEN is the most populated country on the Arabian Peninsula with over 17 million people and has made great strides to very professionally develop its oil industry.
This news release contains forward looking statements within the meaning of Securities Litigation Reform Act that involves risk and uncertainties, including exploration, development, operational, marketing, and implementation risks, other facts described from time to time in the company's public available SEC reports which could cause results to differ materiality.
SOURCE: ADAIR INTERNATIONAL OIL & GAS, INC.
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