FIELD ACTIVITIES / Odyssey Provides Update on Egyptian
Concessions
NASDAQ SYMBOL: OILYF
JUNE 2, 1998
CALGARY, ALBERTA--ODYSSEY PETROLEUM CORPORATION (NASDAQ:OILYF)
("Odyssey" or the "Company") is pleased to provide an update to
shareholders concerning the Qantara, El Mansoura and Siwa
Concessions in Egypt.
Odyssey announces that all financing arrangements are in place to
provide Odyssey's 50 percent share of the US$11 million Letters of
Guarantee to the Egyptian General Petroleum Corporation for the
above concessions. The US$5.5 million associated with the Letters
of Guarantee was funded by way of $500,000 cash from the Company's
treasury, US$3 million by way of irrevocable stand-by letters of
credit and US$2 million by way of a performance security
guarantee.
Odyssey updates prior press releases to announce that the signing
ceremony to formally acquire title to the three concessions has
been scheduled for June 22, 1998, in Cairo.
Odyssey has now signed Joint Operating Agreements with its 50
percent partner, Merlon Petroleum Company, for each of the three
Egyptian concessions. These agreements will be effective upon the
formal signing of the concession agreements.
Odyssey is a Canadian-based energy resource company with a 50
percent working interest in three onshore exploration blocks in
Egypt. Operations are scheduled to begin in mid-1998 and Odyssey's
highest near-term priority is to bring Qantara production onstream
in 1999.
Odyssey is also engaged in the production and distribution of
ethanol in the western United States.
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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