DIGG (Calgary-based): Digital Gas Signs Contracts With Dong Sheng Corporation
NEW YORK, Oct 23, 2000 /PRNewswire via COMTEX/ -- Digital Gas, Inc. (DIGG -
Pink Sheets) today announced that it has signed comprehensive oil & gas
contracts with Dong Sheng Corporation ("DSC") of Dongying, Shandong Province,
Peoples Republic of China. The contracts cover all downstream and all upstream
activities.
"The Dong Sheng Corporation is a unique company, even by Western standards,"
said Mr. W. Brian Lunan, a Director of Digital Gas. "The partnership will
rapidly become a major player in China's oil & gas industry with significant
income flows from a broad spectrum of highly profitable areas in the oil & gas
industry," added Mr. Lunan, formerly with Halliburton, NL McCullough, NL
Industries, Schlumberger Overseas, Phillips Petroleum and Uddeholms/D.N.N. in a
variety of senior positions and as the Director of Training in Brazil and
Argentina for Schlumberger.
With the signing of this agreement, the two companies will act in partnership
throughout China effective immediately and Digital Gas will become a totally
integrated operator in China. The partnership has two main objectives. The
immediate objective is to improve oil & gas production and field recoveries in
all of Dong Sheng's fields. In addition, the partnership plans to begin
acquiring new fields for development within China.
Digital Gas will begin work to enhance the production from Dong Sheng's fields
in several weeks. Digital will immediately provide Dong Sheng with the following
technologies: wax, sanding, completion fluids, mud, petroleum refining,
fracturing heavy oil, drilling and completion, as well as engineering and
training on an ongoing basis, including seminars at Dong Sheng headquarters on
advanced petroleum exploration and exploitation and western management theory.
The initial work to recover the production of old wells and to increase the
production rate will be the following: integrated technology and services to
resolve the wax problem of oil wells of Weibei Oilfield; technical design and
integrated services of formation fracturing in the oil wells of Daluhu Oilfield;
technical design and integrated services of formation fracturing in the oil
wells of Niuzhuang Oilfield; integrated technology and services to resolve the
sanding problem of heavy oil in Jinjia Oilfield and integrated technology and
services to resolve the sanding problem of oil wells of Shangdian Oilfield.
Digital Gas will introduce several new business opportunities to the
partnership. A separate business that provides the most advanced technology of
producing drilling fluids and products will be marketed to third parties
throughout the Shengli Oilfield, as well as other major oilfields throughout
China. In addition, Digital will contribute several manufacturing and
distribution opportunities involving leading-edge technology in multi-phase
flow, separation and jet pumping and electronic control systems for pumping oil
wells. These products will be manufactured by the partners in China for the huge
Chinese market and for export, which is an even greater opportunity for both
digital Gas and Dong Sheng.
Over the last month, opportunities to refine oil in mainland China have been
presented to Digital Gas. The company is now in the process of evaluating these
opportunities.
"After a year's process of reviewing and understanding the various opportunities
in China, Digital Gas has selected the Dong Sheng Corporation as its Chinese
partner. Dong Sheng is without question a special company that is uniquely
capable of implementing the proprietary technologies of Digital Gas and its
associated companies," said Mr. John Kirk, Director of Qingdao Digital Gas
Enhancement & Exploration. "Dong Sheng, which is a ten-year old private stock
company, is perfectly poised to grasp the opportunities presented by WTO and has
agreed to utilize Digital Gas as its strong right arm for technical transfers in
a variety of fields, including energy, medical communications, as well as
other," added Mr. Kirk.
In a related development, Digital Gas, through its wholly-owned Qingdao Harbor
Trading, will act as Dong Sheng's agent in the United States and Canada for
PVPs, which are biodegradable polymers with controlled degradation rates and
improved mechanical properties for use in a variety of fields, and other
products produced by the chemical plants of Dong Sheng Corporation. In turn ,
Digital Gas, through Qingdao Harbor Trading, will introduce to Dong Sheng
advanced, patented medical products that it has sourced for handling a variety
of drug and cosmetic purposes, including breakthrough immune-boosting
antivirals.
Digital Gas is prepared to go to contract on the same basis with any qualified
company in Asia with highly prospective properties in need of Digital's state of
the art enhancement technologies.
With the signing of its first oil & gas contract in China, and with many
opportunities in other areas, such as export-import and e-commerce through
Qingdao Harbor Trading, Digital Gas will consult with its financial and
investment advisors to develop and implement a plan to restructure the company
to maximize shareholder value.
SOURCE Digital Gas, Inc.
CONTACT: Leo Murray of PR Associates, 212-856-4496, for Digital Gas,
Inc.
(DIGG)
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