CORP / Abacan Announces Letter of Intent for Benin Basin Gas and
Electrical Generation Project
TSE SYMBOL: ABC
NASDAQ SYMBOL: ABACF
JUNE 4, 1998
HOUSTON, TEXAS--Abacan Resource Corporation (TSE: ABC,
NASDAQ:ABACF) announces that its wholly owned subsidiary Abacan
Power (Benin) Limited has entered into a binding Letter of Intent
with Enron Benin Power Ltd., a subsidiary of the Enron
Corporation, and the government of Benin, for the development,
financing, construction and operation of an electrical generation
Power Plant to be located in Cotonou, Benin, and a natural gas
pipeline to supply natural gas to the Power Plant.
The technical terms of the project are being finalized with the
Communaute Electrique du Benin (CEB) of Benin and Togo. It is the
intention of the parties to expand the sale of electricity to
areas in the West-African sub-region. The required natural gas
supply for the project will come from Abacan's gas reserves in the
offshore Benin Basin. Abacan Power (Benin) Limited will have an
ownership interest in the pipeline and power plant of up to 20
percent.
Because of the present electricity supply crisis in the
West-African sub-region, Enron and Abacan will be implementing the
execution of the project as soon as practicable, targeting early
to mid-1999 for start-up.
Certain statements in this News Release constitute "forward
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward looking statements
involve risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Corporation to
be materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. In particular, there is no assurance that the
proposed electrical generation project will be completed or that
the Corporation will be able to deliver the natural gas from its
current concession blocks to the project as expected. |
