Strat Petroleum, Ltd. in Discussions to Acquire a 49% Interest of Oil Company with Existing Production in Russia, with Financing Update 4/11/2005 4:41:01 PM
TORONTO, Apr 11, 2005 (BUSINESS WIRE) -- Strat Petroleum, Ltd. (Pink Sheets: SPRL) is in discussions with a Russian Oil Company to acquire a 49% interest of the above said Company.
The latest geological study performed in 2004 by a European geological firm estimates proven reserves at 24.5 million barrels and probable reserves in excess of 140 million barrels of oil. The fields currently have two wells producing approximately 700 barrels per day, generating about $3 million of revenue per month.
This opportunity provides advantages to it, as the Company has a railway storage terminal for 14,000 barrels of crude oil; a major gas pipeline crosses the field, and other assets such as trucks, machinery and equipment. Strat is in the process of performing its due diligence and finalizing the terms and conditions of the acquisition.
Strat has also been in discussions with a private financing group and has received a letter of intent to fund the Company up to US $10 million to complete the acquisition, increase production from the two producing wells, and drill four new wells for which all approvals have been received. Further news about this opportunity will be released once due diligence and agreements have been completed.
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.
SOURCE: Strat Petroleum, Ltd.
Strat Petroleum, Ltd.
Investor Relations/Corporate Communication:
Kathy Bassi, 905-714-0058
www.stratpetroleum.com
. |
