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

To: SofaSpud who wrote (11697)	7/16/1998 7:33:00 AM
From: Kerm Yerman	Respond to of 15196

CORP. / Black Sea Energy Ltd. Updates Russian Legal Proceedings BLACK SEA ENERGY LTD. ANNOUNCES RUSSIAN LEGAL PROCEEDINGS UPDATE CALGARY, July 15 /CNW/ - Black Sea Energy Ltd. announces that it is negotiating a protocol of understanding with its Russian partners in the Tura joint venture. The protocol is intended to provide for the commencement of a comprehensive review of the current operations of the joint venture and a negotiation process aimed at amicably resolving all differences between the parties in connection with the joint venture. A protocol has not yet been signed and there can be no assurance that such negotiations will be successfully concluded. The negotiations follow a decision of the Arbitrage Court of Tyumen Region, Tyumen, Russia. Proceedings had been commenced by Tyumenneftegaz against the Tyumen Regional Administration and the Russian Federation Committee for Geology and Use of Underground Resources, as represented by the Regional Geological Committee (the government bodies that approved the reissuance of the licenses for the Kalchinskoye oilfield and the Northern Kalchinskoye exploration block from Tyumenneftegaz to Tura Petroleum Company), challenging their approval of the license reissuances. The court ruled that the joint decision of the government bodies relating to the reissuances was invalid. However, Tura Petroleum was not a defendant in these proceedings and the decision did not address the Tura Petroleum joint venture. Claims raised against the Tura joint venture are the subject of separate proceedings, presently adjourned to August 3, 1998. Black Sea believes the decision of the Arbitrage Court is incorrect and an appeal of the decision will be filed. Injunctions were obtained by Tyumenneftegaz in the course of the Arbitrage Court proceedings prohibiting the production, transportation and sale of oil by the joint venture without the consent of Tyumenneftegaz. These injunctions will also be appealed. In the meantime, the protocol presently being negotiated is intended to obtain the consent of Tyumenneftegaz to the production, transportation and sale of oil, thereby effectively suspending the operation of the injunctions until the negotiations between the parties with respect to the future development of the project have been concluded. As stated above, a protocol has not yet been signed and there can be no assurance that such negotiations can be successfully concluded. Black Sea has net current assets in North America of U.S.$40 million and intends to pursue alternate oil and gas investment opportunities outside of Russia in order to diversify its holdings and enhance shareholder value.