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Gold/Mining/Energy : Tracer Petroleum (TCXXF) -- Ignore unavailable to you. Want to Upgrade?

To: Saracen who wrote (902)	1/14/1999 10:59:00 AM
From: Leon D. Reames	Read Replies (1) \| Respond to of 1261

Looks like some good news coming out---- Tracer Petroleum International Set Up to Pursue Opportunities in the Islamic Republic of Iran PR Newswire - January 14, 1999 10:27 VANCOUVER, British Columbia, Jan. 14 /PRNewswire/ -- TRACER PETROLEUM CORPORATION (Nasdaq: TCXXF; VSE: TPC) reports that further to the news release dated December 11, 1998, a new subsidiary, Tracer Petroleum International ("TPI"), is in the process of being incorporated in Bermuda for the purpose of pursuing oil and gas opportunities in Iran. As per an Association Agreement executed between Tracer Petroleum Corporation ("Tracer") and the Mullins Group ("Mullins"), the initial equity in TPI is owned as to 33.34% by Tracer, and 66.66% by Mullins. The Board of Directors of TPI consists of Peter L. Holstein and William T. Mullins, both of London, England, representing Mullins, and Larry W. Youell representing Tracer. Tracer has agreed to fund up to US$100,000 of the costs incurred by TPI in identifying and negotiating the acquisition of oil and gas assets in Iran. It is the intention of TPI to acquire a majority interest in prospective petroleum assets in Iran, and then subsequently bring in a partner of partners. Also, Tracer has the exclusive option, for a period of up to 12 months, to acquire the 66.66% interest in TPI from Mullins, for consideration based upon 15% of the total Net Present Value discounted at 15% ("NPV15") of the petroleum project or projects acquired in Iran, as determined from proved and probable recoverable reserves as estimated by a competent independent engineering firm. This is subject to the project or projects having a minimum NPV15 value of US$20 million; Tracer will not be required to pay any consideration for any NPV15 value beyond US$100 million. Any shares to be issued by Tracer as consideration will be subject to approval by the regulatory authorities having jurisdiction, and will have a deemed value of US$2.00 per share. William T. Mullins traveled to Iran on behalf of TPI in December, 1998, where he had several meetings with representatives of both the National Iran Oil Company ("NIOC"), and the government of Iran. Based upon these meetings, Mr. Mullins is confident that TPI will be offered the opportunity to investigate and negotiate the acquisition of an interest in one or more petroleum projects in Iran. Further meetings are planned during the next 30 days; additional news releases will be made as material developments occur. In other news, Tracer has received notification from the Operator of the Ogan Komering Block ("OK Block") in Indonesia advising the Company that the "carried cost obligation pool," which is the accumulated past costs relating to Tracer's pro-rata share of ongoing expenses of the OK Block, are liquidated in full. This has occurred in spite of record low world oil prices and will result in a marked increase in the Company's monthly net cash flow from the block. Net cash flow, based on world oil prices of some $11.40 per barrel will approximately triple from $6,832.02 received in October to $20,022.39 due for the month of November 1998. Future cash flow will be affected by the level of operations and world oil prices. This release contains "forward-looking statements" as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectation will prove to have been correct. Management is currently reviewing many options and there is no assurance that they will not make decisions other than those now contemplated. The Company is subject to political risks and operational risks identified in documents filed with the Securities and Exchange Commission, including changing and depressed oil prices, unsuccessful drilling results, change of government and political unrest in its main area of operations. NOTE: The Vancouver Stock Exchange has neither approved nor disapproved the content of this release. SOURCE Tracer Petroleum Corporation /CONTACT: Craig Doctor of Tracer Petroleum, 604-682-7507/ /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 121391/ /Web site: hostec.com