Wednesday July 30 7:45 AM EDT
Company Press Release
Source: Environmental Remediation Holding Corporation
ERHC Signs Joint Venture With Native American Oil Company
BAPCO Tool, to be used to increase production in Uinta Basin on Native American Lands
BROUSSARD, La., July 30 /PRNewswire/ -- Environmental Remediation Holding Corporation (OTC:ERHC - news) and its wholly owed subsidiary, Bass American Petroleum Corporation (BAPCO), announced today that they have entered into a joint venture with M III Corporation of Roosevelt Utah for oil and gas remediation, development, and production.
The joint venture agreement targets the recovery and workover of a substantial number of oil and gas wells located on the 4 million acre Uinta & Ouray Reservation in Northeastern Utah. M III is a Native American-owned and registered oil company with ``Tribal Preference'' which allows the joint venture a first right to acquire any additional oil and gas leases as they become available.
The joint venture includes wells located within the noted Bluebell, Altamont and Duchesne fields, which have produced to date more that 300 million barrels of oil and have estimated remaining reserves exceeding 1 billion barrels of oil.
ERHC/BAPCO will provide site management, use of its BAPCO Tool(TM), and funding for a substantial working interest on all leases owned by the joint venture. The proprietary BAPCO Tool(TM) technology has been shown to increase production flow rates by more than 300%. The agreement earmarks the revenues generated from the production of 28 wells to repay ERHC's funding contribution.
Prior production records indicate that many of the wells are capable of producing between 1000 to 1200 barrels a day. ERHC has been informed that the wells have not undergone secondary recovery, and should require little or no rework. BAPCO expects to return several wells to commercial production within the next 10 days.
BAPCO's president, engineer Robert McNight, a noted expert in drilling and production in the oil industry, has provided initial production estimates, and a plan for rework and development, following a complete survey of the sites obtained by the joint venture.
The most recent geological evaluation of the area was performed by independent petroleum engineer, Richard Stephen Shuster, P.E., in 1993. His report, which addresses less than half of the wells targeted for immediate workover by the joint venture, estimates that proven producing reserves on those wells exceeds 4,895 barrels a day.
The joint venture agreement was negotiated by ERHC's CEO, Sam L. Bass, Jr., and ERHC's Vice President Noreen G. Wilson. J. R. Murray, Esq., CEO, of M III Corporation remarked, ``It has taken M III more than two years of negotiations to find the right joint venture partner. ERHC/BAPCO was chosen because of Sam Bass's long history as an innovator in the oil industry.''
Sam L. Bass Jr., Chairman and CEO of ERHC commented, ``ERHC/BAPCO is pleased to be working with M III, one of few Native American owned and operated oil companies, in the important task of renewing oil production on precious Native American Land. We look forward to developing a sound ecological plan through our environmental division for the remediation of many well sites, as well as a strategy for future oil and gas development.'' Environmental Remediation Holding Corporation is engaged in oil and gas production activities and environmental remediation, both domestically and internationally. Through a series of acquisitions, the company has formed a unique, full service organization dedicated to providing oil and gas related services to major oil companies and governmental institutions. This includes the development and rework of oil and gas properties, plug and abandonment services (P&A), environmental engineering and consultation, hazardous waste management (including NORM waste), non hazardous waste clean-up, manufacture and distribution of waste clean-up materials, waste management and waste transportation and disposal. Environmental Remediation Holding Corporation's stock is traded on the NASD OTC Bulletin Board under the symbol ``ERHC'' and is listed in Standard & Poor's Corporate Records.
Safe Harbor Notice: This release contains forward looking statements regarding ERHC's future plans and expected performance based upon assumptions ERHC believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including without limitation: fluctuations in the price of crude oil and natural gas, the success rate of exploration efforts, the timeliness of development activities in Texas, Utah, and the Gulf of Guinea, West Africa; changes in the political and economic environment in which ERHC has international operations as well as other risk factors described from time to time in the company's documents and reports filed with the Securities and Exchange Commission.
For more information, visit ERHC's website at www.erhc.com.
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SOURCE: Environmental Remediation Holding Corporation
Contact: J.R. Murray CEO of M III Corporation; Noreen Wilson, CFO or Jim Griffin Director of ERHC, 516-433-9119 or Investor Relations: Geoffrey Plank of GFC Communications, 561-655-7575
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More news for referenced ticker symbols: ERHC, and related industries: environmental, oil/energy.
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