Tuesday March 20, 9:01 am Eastern Time
Press Release
SOURCE: ADAIR INTERNATIONAL OIL AND GAS, INC.
ADAIR INTERNATIONAL OIL AND GAS, INC. Signed a Memorandum of Understanding (MOU) With the Yemen Free Zone Public Authority to Build and Operate a Power Plant and a Sugar Refinery at the Aden Free Zone
HOUSTON, March 20 /PRNewswire/ -- John W. Adair, Chairman of ADAIR INTERNATIONAL OIL AND GAS, INC. (OTC Bulletin Board: AIGI - news), stated that ARKEL SUGAR INTERNATIONAL completed the final feasibility study for a Power Plant and Sugar Refinery on behalf of ADAIR INTERNATIONAL OIL AND GAS, INC. during March 2001. Mr. Jalal Alghani, Vice Chairman, signed a memorandum of understanding with the Yemen Free Zone Public Authority to build and operate the facility. Construction will begin as soon as the final engineering is completed and will be led by a consortium of ADAIR and ARKEL. The Plant is projected to have a construction cost of approximately $60 million USD and to be completed in eighteen months. ARKEL is a major constructor of international co-generation facilities of power plants and sugar refineries having constructed a large numbers of plants in Egypt, Kenya, Ivory Coast, Sudan, in addition to Texas and Florida within the U.S. The project has been submitted to and reviewed by the Export-Import Bank of the United States and the International Funding Corporation (IFC), part of the World Bank Group.
Jalal Alghani, Vice Chairman and Chief Financial Officer of ADAIR, stated the feasibility study prepared by ARKEL, showed the project has the capability to pay all production costs and debt service and maintain a healthy positive cash flow that increases as debt payments are made. The study shows the first full year will net cash flow of $1,628,008 after repaying the working capital loan plus interest of $3,887,897. The following year net cash flow increases from approximately $6 Million USD to $15 Million USD after retirement of debt.
John W. Adair, Chairman and Jalal Alghani, Vice Chairman, stated, ``ADAIR is very positive relating to investing in Yemen, not only for oil exploration but with the Aden Free Zone offering extremely excellent terms, this opens the door for attractive business ventures.''
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 AND GAS, INC.
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