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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (10998)	5/29/1998 3:55:00 PM
From: SofaSpud	Respond to of 15196

PROPERTY ACQUISITIONS / Koch Canada Oilsands KOCH CANADA ANNOUNCES FINAL APPROVAL AND ACQUISITION CALGARY, May 29 /CNW/ - Koch Oilsands L.P. announced today it has completed its $30 million acquisition of Athabasca Oil Sands leases 5 and 52. The two leases cover a combined area of 55,874 acres and are located north of Fort McMurray. The acquisition of the Oil Sands Project means that Koch will retain a 78 percent interest and will become the operator of the Project, which also includes miscellaneous assets from Solv-Ex Corp. It is expected that United Tri-Star Resources (UTS) will increase its holdings from 10 percent to 22 percent later today in a separate agreement with Solv-Ex. Koch will be the operator of the Fort Hills Project, according to the terms of a joint venture agreement signed previously by both Koch and UTS. Immediate plans include a 12 month pre-feasibility study to determine the size and quality of the resource and the types of mining, extraction and upgrading technologies available. In addition, the study will examine available market and transportation alternatives. As operator, Koch will work closely with regional communities and stakeholders to develop relationships founded on open communication and trust. Koch is committed to creating sustainable value for the communities where we operate through job creation and investment. ''This project is a milestone for both Koch and UTS. This has been a long process, and we're ready to begin the next steps leading to development,'' said David Park, Chief Financial Officer for Koch Canada. ''Our goal is a 60,000 to 90,000 barrel per day project by 2004, and we look forward to achieving this with the involvement and support of the local communities.'' Koch Canada is a wholly-owned subsidiary of Koch Industries Inc., the second-largest privately held company in the U.S. with regard to revenue, as ranked by Forbes. Its overall revenue for 1997 exceeded $30 billion. Koch has conducted business in Canada's oil and gas industry through a number of subsidiaries since 1959. Koch's nearly 600 Canadian personnel are engaged in heavy oil and gas exploration and production, oil and natural gas marketing, asphalt products, capital services, and the manufacturing of industrial products. For more information on Koch, refer to Koch's home page at www.kochind.com on the Internet. -30- For further information: Tammy Sauer, Koch Industries, Inc., (403) 716-7773 or Michael G. Wilson, Koch Industries, Inc., (202) 737-1672