02-16 4:01 (Strat Petroleum, Ltd.) Completes Agreement to Acquire 80% Profit Interest in an 11.25 Million Barrel Northern Orenburg Oil & Gas Property
Wednesday February 16, 4:01 pm ET
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. |
