PR Newswire
Monday April 3, 8:45 am Eastern Time
Company Press Release
SOURCE: ADAIR INTERNATIONAL OIL & GAS, INC.
ADAIR INTERNATIONAL OIL AND GAS, INC. (AIGI) and OCCIDENTAL and SABA YEMEN OIL COMPANY Sign Production Sharing Agreement On Highly Sought After Exploration Block In Yemen
HOUSTON, April 3 /PRNewswire/-- John W. Adair, Chairman of ADAIR INTERNATIONAL OIL & GAS, INC. (OTC Bulletin Board: AIGI - news; AIGI) announced today that its wholly owned subsidiary company, ADAIR YEMEN EXPLORATION LIMITED and partners OCCIDENTAL YEMEN SABATAIN, INC. and SABA YEMEN OIL COMPANY LIMITED have signed a Production Sharing Agreement with the Ministry of Oil and Mineral Resources to explore for oil on Block 20 in the Republic of Yemen. ADAIR signed the original MEMORANDUM OF UNDERSTANDING for this block in October of 1999.
Working interests held in the project are ADAIR 30%, OCCIDENTAL 50% and SABA 20%. The working interests as a group are subject to a 5% carried interest held by the YEMEN COMPANY FOR INVESTMENTS IN OIL AND MINERALS (YICOM) in the concession area.
Block 20 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 their comprehensive knowledge and experience in the block. OCCIDENTAL, with their 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. has extensive experience in Yemen and was formally Exploration Manager for YEMEN HUNT OIL COMPANY.
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 and an additional four (4) exploration wells in the optional second exploration period. This represents a minimum financial commitment of $16.3 million dollars during the six (6) year exploration period, if the group elects to complete the second 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.
``The signing of this PSA represents the culmination of over three years of extensive geological evaluation and business development efforts in Yemen by ADAIR to secure this unique exploration opportunity. ADAIR also has other investment projects under development in Yemen at this time,' stated Mr. Jalal Alghani, Vice-Chairman of ADAIR INTERNATIONAL OIL & GAS, INC (AIGI).
ADAIR INTERNATIONAL OIL & GAS, INC. (AIGI), whose home office is in Houston, Texas, also has interests in the United States in natural gas fired power generation systems as well as oil and gas interests in Colombia. OCCIDENTAL YEMEN SABATAIN, INC. is a wholly owned subsidiary of OCCIDENTAL Oil and Gas Corporation which is headquartered in Los Angeles, California, USA. SABA YEMEN OIL COMPANY is a wholly owned subsidiary of SABA OIL AND GAS LIMITED, a private Yemen company with principal ownership held by Sheikh Mohammed B.Y. Al Rowaishan. The Al Rowaishan Group of companies represent major commercial and trading interests in Yemen.
This news 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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