Abacan Signs Memorandums of ---------------------------------------------------------------------------- Understanding to Acquire Concessions in West Africa.CALGARY, Alberta--(BUSINESS WIRE)--June 17, 1996--Abacan Resource Corporation (ABC.) announced that it has entered into separate Memorandums of Understanding to acquire interests in two offshore oil concession properties located in the West African countries of Benin Benin, which was probably founded in the 13th cent. and flourished from the 14th through the 17th cent. The kingdom was ruled by the Oba and a sophisticated bureaucracy. From the late 15th cent. Benin traded slaves as well as ivory, pepper, and cloth to Europeans. In the early 16th cent. the Oba sent an ambassador to Lisbon, and the king of Portugal sent missionaries to Benin. The kingdom of Benin declined after 1700, but revived in the 19th cent. and Cote d'lvoire. "These properties could significantly enhance Abacan's offshore position in West Africa", stated Wade G. Cherwayko, President and Chief Executive Officer of the Calgary based international exploration company. "The Concessions have proven reserves with appraisal and exploration upside, thus keeping in line with our overall exploration and development strategy." CONCESSION BLOCK 1 - REPUBLIC OF BENIN On June 14, Abacan executed a Memorandum of Understanding with Addax addax (ăd`ăks), large, desert-dwelling antelope. It is a single species, Addax nasomaculatus. The addax is yellowish-white in color, has a brown mane and throat fringe, and may stand as high as 42 in. (106 cm) at the shoulder. Both sexes bear long, spiraling horns reaching up to 43 in. (109 cm) in length. Petroleum Ltd. of Geneva, Switzerland, acquiring the right to become the owner of 50 percent of Addax's interest in Concession Block 1 located offshore Benin Republic. At present, Addax holds a letter of intent with the government of Benin under which it has the right to enter into a formal Production Sharing Agreement with the government for Concession Block 1 which contains the producing Seme oil field. Abacan will pay an entry fee of U.S. $400,000 which goes towards work obligations, after the signing of the formal Production Sharing Agreement. Addax and Abacan will be working together to finalize the terms of a Production Sharing Agreement in the near future. Concession Block 1 is located immediately west of Nigerian Concession Block 309 where Abacan is currently drilling an offshore exploration well, AJE #1, Abacan's first deep water test. The acquisition of an interest is subject to the execution of a formal Production Sharing Agreement between Abacan, Addax and the Benin government. CONCESSION BLOCK C1-26 - REPUBLIC OF COTE D'LVOIRE Abacan has also executed a Memorandum of Understanding with Addax Petroleum Cote d'lvoire of Geneva, Switzerland, granting Abacan the right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others.Notes: For example, a football team may have the right of first refusal on a player's contract. This would mean they can make the first offer, or perhaps even match other offers, before the player signs with another team. This term is also used frequently in real estate transactions. See also: Right to acquire a 20 percent interest in the C1-26 Concession Block located offshore in the Republic of Cote d'lvoire. The Espoir field is situated within this Block. The right of first refusal is open for 30 days, during which time Abacan will perform a technical review of the Block. Following completion of the technical review and if the right of first refusal is not implemented, Abacan has the right to negotiate terms for the acquisition of up to a 50 percent interest in the Block. CONTACT: Abacan Resource Corporation Wade Cherwayko (403) 262-1220 or Abacan Resource Corporation Ms. Lon Boshouwers (403) 262-1220 |
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