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Gold/Mining/Energy : Black Sea Energy (BSX)

BSX 98.58

-0.4%

Dec 3 3:59 PM EST

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To: gypsy who wrote (21)	8/6/1998 8:27:00 PM
From: keith massey	Read Replies (1) of 180

In regards to the court case. I will try and break it down, try to follow me. Hopefully I get all the facts straight. Tyumen Oil Company owns 51% of Tyumenneftegaz. Black Sea Energy owns 100% of Great Plains Petroleum Tyumenneftegaz had a 100% option on the Tura property (Kalchinskoye oil field and the Northern Kalchinskoye exploration block) for several years Under "new" Russian Law Tyumenneftegaz and Great Plains Petroleum Company created the Tura Petroleum Company in Nov. 28, 1996 each owning 50% of the company. Tyumenneftegaz transfered the option on the Tura property to the Tura Petroleum Company. This gave BSX 50% of the Tura property. BSX spent around $50 million developing and exploring the land and got 50% of the oil produced from the property. (The property currently produces 8800 b.o.d) On May 19, 1998 Tyumen Oil Company went to court saying that the option agreement made under the "new" Russian Law was not valid under "newer" Russian law. In other words, after seeing how good the land was they wanted it back and are looking for a loop hole to get it back. Talk about a back stab by your partner. They managed to get an injuction against BSX so they don't sell any oil from the propety until the court case is cleared up. As far as I understand it, if they lose the option they will get partial money back for the money they have already spent on the land. I don't know how much money they will get back but I can only assume it will be fairly substantial. If they win.... Best Regards KEITH

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