Thursday May 28, 6:01 am Eastern Time
Company Press Release
Mountain Energy Inc. Announces Corporate Profile and Introduces Management Team
HOUSTON--(BUSINESS WIRE)--May 28, 1998--Mountain Energy Inc. (formerly International Casino Cruises Inc. OTCBB:ICVI) announced today its corporate profile and management team. Mountain Energy Inc. (''Mountain'') is in the business of acquiring primary producing reserves along with the development and production of passed over developed domestic oil and gas reserves utilizing modern technology to find and enhance production.
Mountain sees an opportunity to attain growth and shareholder value through strategic acquisitions of proved oil and gas properties located primarily throughout Texas and Louisiana Gulf Coast onshore and offshore in water less than 50' in depth and the Mid-Continental Region of the United States.
Many Gulf Coast oil and gas fields have never been evaluated with advance logging tools that can detect previously overlooked and untested hydrocarbon-bearing formations that lie behind casing pipe. Most of the major oil and gas fields Gulf Coast region were discovered between 1930 and 1970 and were logged with simple electric logging equipment. Wells were lined with steel casing down to the objective formation depth to prevent shallower formations from collapsing into the wellbore. Until the recent emergence of superior case hole logging technology and digital log re-processing, it was difficult to identify hydrocarbon bearing formations behind cased wellbores.
The American Petroleum Institute estimates as much as 50 billion barrels of oil and gas equivalents have been passed over in the United States alone that may be developed using these new technologies.
Mountain currently owns 30 separate properties in West Virginia with approximately 1,300 acres owned in fee and an additional 1,300 acres of mineral rights. Reserve estimates by the U.S. Geological Survey (''U.S.G.S.'') indicate in excess 10,000,000 tons bituminous coal. This low sulfur, low ash content, high BTU, clean burning currently sells for $25-$28 per ton. With cost of mining and transportation estimated at $11-$15 per ton, this will show a $10 per ton conservative net profit, (representing maximum cost to mine and minimum selling price), providing net asset value in excess of $100,000,000, with a potential of $170,000,000. The U.S.G.S. estimates also indicate in excess of 2 billion cubic feet of coal methane gas. This gas currently sells in excess of $3.00/MCF 1000 cubic feet. In most cases this gas is subject to an alternate fuel tax credit in excess of $3 MCF, for an estimated value of $5/MCF valued at $10,000,000.
A separate reserve study has been commissioned by Independent Reservoir and Mining Engineers to arrive at a realistic present net asset value. History indicates that U.S.G.S. estimates usually represent 25 percent to 40 percent of actual minerals in place. The Company continues to acquire additional acreage in the area.
MANAGEMENT
Jack Uselton -- Chairman and Chief Executive Officer. Mr. Uselton, 59, is a seasoned veteran in the oil and gas industry with over 40 years experience in all aspects of the business. Prior to forming Mountain Energy, Mr. Uselton owned and operated a drilling company primarily working in Texas and Oklahoma. Prior to that, Mr. Uselton has worked for several independent oil companies as an operations manager, operations engineer and drilling department manager. Mr. Uselton has drilled and operated in 93 different countries throughout the world.
R. David White -- Vice-President, Director and General Counsel. Mr. White, 53, serves as corporate legal counsel primarily responsible for acquisitions and contract negotiations. Prior to joining Mountain Energy, Mr. White has served as a private attorney in Texas representing real estate investment trusts and several corporate clients. Additionally, Mr. White served as senior attorney for Aminoil acting as primary legal counsel for all domestic U.S. exploration, land and production activities.
Winston Overstreet -- Vice-President of Operations. Mr. Overstreet, 57, with 40 years experience is responsible for well planning, drilling and completion as well as well work over and productions. Prior to joining Mountain Energy, Mr. Overstreet has acted as a drilling contractor, supervising the drilling operations for various oil companies including Sonat, Rutherford Oil and Transworld Egypt Petroleum.
Quentin Moore -- Vice-President of Exploration. Mr. Moore, 75, with 50 years experience, is responsible for generating, analyzing and developing drilling prospects. Prior to joining Mountain Energy, Mr. Moore was responsible for coordination of exploration and exploitation in ''Lower 48'' States where the company was acquiring properties with a staff of two geophysicists and ten geologists. Developed and managed exploration programs in Texas and Louisiana Gulf Coast onshore. Responsible for all exploration and exploitation in states of New Mexico to and including Florida and Arkansas. Directed exploration facilities in U.K. North Sea, Scotland onshore, West German Baltic, Egypt, Columbia, and Ecuador.
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Contact:
Mountain Energy Inc.
Joe Gort, 800/716-5147
or
George Guttman, 718/951-0260 or 212/293-9034
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