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Monday August 21, 8:55 am Eastern Time
Press Release
SOURCE: ADAIR INTERNATIONAL OIL & GAS, INC.
Yemen Parliament Ratifies Block 20 Production Sharing Agreement With ADAIR, OCCIDENTAL, and SABA
HOUSTON, Aug. 21 /PRNewswire/ -- John W. Adair, Chairman of ADAIR INTERNATIONAL OIL AND GAS, INC. (OTC Bulletin Board: AIGI - news) announced today that the Parliament of the Republic of Yemen has ratified and passed into law the Production Sharing Agreement (PSA) for Sabatain Block 20. The PSA was signed April 2, 2000 by Adair and Partners with the Ministry of Oil and Mineral Resources for the Republic of Yemen.
ADAIR YEMEN EXPLORATION LIMITED (a wholly owned subsidiary of AIGI.OB) will serve as exploration operator for the Block on behalf of partners OCCIDENTAL YEMEN SABATAIN, INC. and SABA YEMEN OIL COMPANY LIMITED. The group expects to commence 3D seismic data acquisition as early as the fourth quarter of 2000.
Working interests in the Block are ADAIR 30%, OCCIDENTAL 50% (NYSE: OXY - news) and SABA 20%. ADAIR believes the commercial terms of the PSA are very favorable.
Block 20 is located in the heart of the prolific production area (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 newly discovered oil in Block 20 to market within a short time frame and at minimal cost. ADAIR believes that the block could contain up to 340 million barrels of recoverable reserves. Mr. Richard G. Boyce, President of ADAIR YEMEN EXPLORATION was formally exploration manager for YEMEN HUNT and has extensive geological knowledge of Block 20.
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.
ADAIR INTERNATIONAL OIL AND GAS, INC. (AIGI.OB), 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 with headquarters 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 represents 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, 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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