Strat Petroleum, Ltd. Completes Agreement to Acquire 80% Profit Interest in an 1
.25 Million Barrel Northern Orenburg Oil & Gas Property
Business Editors / Energy Editors
TORONTO--(BUSINESS WIRE)--Feb. 16, 2005--
Strat Petroleum, Ltd. (OTCPS:SPRL) has completed an
agreement with a Company in Russia called the Industrial Scientific
Centre to establish a 50/50 joint venture, and 80% net profit interest
to develop a field with significant reserves known as the
Ementajevskoje oil site, the license to which is currently owned by
the Industrial Scientific Centre. The field has proven reserves of
over 11.25 million barrels of crude oil, and probable reserves of over
26.0 million barrels.
Tejas Corporate Partners' geologist and senior management, having
reviewed the seismic and other data presented, immediately recommended
that Strat's Management sign the joint venture agreement. In addition,
an initial review of data on six other fields presented by the
Industrial Scientific Center, has led Tejas' team to advise Strat to
participate in the tendering process on three of the fields. These
other fields are similar and/or larger in scope than the
Ementajevskoje oil site, and may also include producing wells.
Three drilling sites have already been identified on the
Ementajevskoje oil site which covers over 300 square kilometers, and
Strat Management expects drilling to commence in the next 60-90 days.
In the interim, a feasibility study will be conducted to confirm total
potential reserves of the field, including costs and development
plans. Expected investment will range between $2.0 and $2.5 million
for 3 wells, which should produce in excess of 500bbls per day per
well.
The Orenburg Region is a leading oil and gas producer. Exploration
has revealed over 140 oil and gas deposits. Proven reserves of oil
exceed 963.1 million barrels, while gas estimates are 28.23 trillion
Btu. The region has an estimated 40 to 50 years of commercially
exploitable natural gas reserves. Orenburg currently produces between
63.5 and 64.3 million barrels of crude oil. Only about 1% of proven
reserves have been extracted which not only leaves significant
quantities yet to be extracted but large tracts of land still
untested.
Strat Petroleum, Ltd.'s strategy is to enhance shareholder value
through the acquisition of oil & gas properties with proven reserves
or producing/capped wells. Should you wish any additional information
on our projects or management team, please visit our website at
www.stratpetroleum.com or contact our Investor Relations office. Due
to the volume of interest we will make every effort to respond as
promptly as possible. |
