Arakis Reports on Annual General Meeting.CALGARY, Alberta--(BUSINESS WIRE)--June 17, 1998-- Arakis(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AKSEF)--Arakis Energy Corporation (NASDAQ:AKSEF) announced today that the board of directors of the Company was increased from 9 to 11 members at the Annual General and Special Meeting of Shareholders held on June 16, 1998. The present directors were re-elected along with two new directors -- Ian H. Lundin and Fred C. Coles. The Company gave an operational report highlighting progress of the pipeline construction, which commenced on May 4, 1998 and continues on schedule at eight separate locations along the pipeline route. As well, the Company reaffirmed its expectation that the Consortium would meet its scheduled date for start-up Start-up The earliest stage of a new business venture. of mid-1999, at a production rate of 150,000 barrels of oil per day. Arakis also said today that it has recently been involved in discussions with the Government of Sudan concerning the Company's management strategy for its Sudan Project. The Government expressed certain concerns through a sixty-daynotice of possible termination that was subsequently withdrawn after productive discussions with Company officials. The Notice asserted that State, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Arakis, and Arakis had proceeded with management changes in contravention A term of French law meaning an act violative of a law, a treaty, or an agreement made between parties; a breach of law punishable by a fine of fifteen francs or less and by an imprisonment of three days or less. In the U.S. of the Exploration and Production Sharing Agreement Production sharing agreements (PSAs) are used primarily to determine the share a private company will receive of the natural resources (usually oil) extracted from a particular country. ("EPSA EPSA Electric Power Supply Association EPSA European Pharmaceutical Students Association EPSA Exploration & Production Sharing Agreement EPSa Elektronik & Präzisionsbau Saalfeld GmbH (German electronics manufacturer) ") and that State was required to correct the default or the Government would exercise its right to terminate the EPSA. The Notice referred to a letter dated March 2, 1997 whereby State had assured the Government that the structure and management of State and Arakis would not be subjected to substantial changes or reorganization. The letter also confirmed that State would do everything possible, subject to applicable law, to preserve the rights and interests of the Government in continuing the management and direction of Arakis and State to achieve the scheduled start-up date of the Project. Senior management of Arakis will visit the Sudan next week to review progress on the Project and to reconfirm re·con·firm tr.v. re·con·firmed, re·con·firm·ing, re·con·firms To confirm again, especially to establish or support more firmly: reconfirmed the reservations. full compliance by the Company with all Project agreements.
CONTACT: Arakis Energy Corporation
Kristine Dow, 403/263-2471
403/263-8069 (FAX)
http://www.arakis.com
investor@arakis.com
or
Ron Burrows, 403/263-2471
403/263-8069 (FAX)
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