ADAIR INTERNATIONAL Announces Block 20 Presidential Decree Signed By Yemen President
September 6, 2000 09:00 AM Eastern Time
HOUSTON, Sept. 6 /PRNewswire/ -- John W. Adair, Chairman of ADAIR INTERNATIONAL OIL & GAS, INC. AIGI announced today that on September 2, 2000 the President of Yemen signed presidential decree number 21, thereby passing into law the Production Sharing Agreement governing 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.
"This was the final step in a year long process required to secure the PSA on Block 20 and represents a milestone for Adair's program in Yemen," stated Mr. Dick Boyce, president of Adair Yemen Exploration Limited. Adair has opened an office in Sana'a, Yemen and has named Mr. Gene Ackerman as General Manager. ADAIR YEMEN EXPLORATION LIMITED (a wholly owned subsidiary of AIGI) will serve as exploration operator for the Block on behalf of partners OCCIDENTAL YEMEN SABATAIN, INC. and SABA YEMEN OIL COMPANY LIMITED.
"ADAIR originally signed the MEMORANDUM OF UNDERSTANDING for the exploration block and subsequently farmed in OCCIDENTAL and SABA Yemen Oil. For the farm in ADAIR receives cash and is carried through a major portion of the 3D seismic. With the partners covering 70% of the additional operating cost, ADAIR is able to utilize prudent risk management while being the operator of a world class exploration play," stated Jalal Alghani, Vice Chairman.
Working interests in the Block are ADAIR 30%, OCCIDENTAL OXY 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 thru its evaluation that Block 20 contains in excess of 340 million barrels of recoverable reserves.
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 and West Texas. 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 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. |
