CORP / Odyssey Petroleum - United States Congress Extends
Ethanol Tax Incentive
NASDAQ SYMBOL: OILYF
MAY 27, 1998
CALGARY, ALBERTA--ODYSSEY PETROLEUM CORPORATION (NASDAQ:OILYF)
("Odyssey" or the "Company") is pleased to advise that on May 22,
1998 the United States Congress passed legislation extending the
tax incentives for renewable alcohols through to the year 2007.
This tax incentive extension supports the continued profitable
operation of the Company's Wyoming Ethanol production facility in
Torrington, Wyoming, and maintains the Company's role as a
significant supplier of ethanol to the inter-mountain states and
an important local employer. In addition, ethanol production
provides an alternative market for grain and a source of high
protein feed to the local feed-lot industry.
Under the provisions of the legislation, the tax incentive will be
scaled down from its current 5.4 cents per blended gallon to 5.3
cents in 2001, 5.2 cents in 2003 and 5.1 cents in 2005 and beyond.
The reduced tax rate for gasoline containing ethanol produced from
domestic renewable resources received widespread support from both
United States political parties, the Administration, members of
Congress, State Governors and a wide range of consumer and
interest groups. It is anticipated that President Clinton will
sign this legislation promptly.
Odyssey is a Canadian-based energy resource company with a 50
percent working interest in three onshore exploration blocks in
Egypt - Qantara, El Mansoura and Siwa. Operations are scheduled to
begin in mid-1998 and Odyssey's highest near-term priority is to
bring Qantara production onstream in 1999.
This release contains "forward looking statements" within the
meaning of Section 21E of the Securities and Exchange Act of 1934,
as amended. Although the Company believes that the expectations
reflected in such forward looking statements are reasonable, it
can give no assurance that such expectations will prove to have
been correct. Important facts that may cause actual results to
differ (the "Cautionary Statements") include but are not
necessarily limited to, political and economic stability of the
countries in which the Company intends to operate, the
availability of commercially viable projects in which the Company
may participate, or the Company's ability to obtain adequate
financing. All subsequent written and oral forward looking
statements attributed to the Company or persons acting on its
behalf regarding the subject matter hereof are expressly qualified
in their entirety by the Cautionary Statements.
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