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Gold/Mining/Energy : Black Sea Energy (BSX) -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (50)	8/12/1998 8:41:00 AM
From: Buckey	Respond to of 180

NEWS OUT Black Sea Energy Ltd BSX Shares issued 89,694,434 1998-08-11 close $0.26 Wednesday Aug 12 1998 Mr. Clint Hussin reports Black Sea Energy has signed an agreement with its Russian partner which establishes a process to resolve differences that have arisen over their Tura oilfield joint venture in the Tyumen region of Western Siberia. The agreement, contained in a protocol of understanding, provides for a comprehensive audit of Tura to be performed by an independent, international accounting firm to assist in evaluating the contributions that have been made by Black Sea and its partner, Tyumenneftegaz, and its parent company, Tyumen Oil Company. The financial audit is expected to clarify for the new management of Tyumen Oil Company the terms and conditions of the participation by its 51 per cent owned subsidiary in the Tura joint venture. The agreement provides that, once this process has been completed, Tyumen Oil Company and Tyumenneftegaz will take the necessary steps to resolve any remaining uncertainties surrounding the reissuance to Tura of the Kalchinskoye production block and the North Kalchinskoye exploration block that are currently the subject of proceedings in the Russian courts. Any necessary amendments will be properly executed and filed to definitively confirm the validity of the joint venture's licences. The parties also have agreed to establish new arrangements for the sale of oil, produced by the Tura joint venture, by Tyumen Oil Company and Tyumenneftegaz on standard commercial terms. The agreement does not provide for any change in the control or management of the Tura joint venture. This is a major step to resolving the companies' differences and returning to the spirit of partnership and co-operation that existed at the outset of the project. While Black Sea is encouraged by the signing of the new agreement, there is no assurance that it will result in a satisfactory and timely resolution of all issues between the parties. The decline of the Russian economy and the present investment environment presents challenges for foreign firms doing business in Russia. Black Sea has net current assets in North America of $40-million (U.S.) and intends to pursue alternate oil and gas investment opportunities outside Russia in order to diversify its holdings and enhance shareholder value.