Epic Energy - Contract for Sale of Crude Oil from Aktash Field in Crimea.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Feb. 22, 1996--Epic Energy Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :EPI EPI exocrine pancreatic insufficiency. ) announced today that the Company's Ukraine Ukraine (y  `krān, ykrān`), Ukr. Ukraina, republic (2005 est. pop. subsidiary, Krym Texas Nafta, had signed a contract for the initial sale of crude oil from the Aktash Field in Crimea. The oil is being sold to the Lviv Pilot Refinery Plant, in Lviv, Ukraine, at a net-after-transportation price of US$18 per barrel, Ronald Cormick, the president of Epic, reported. "This price is extremely competitive, and our transportation costs are very low. We're selling the oil at a higher price and transporting it at a lower cost than we expected when we ran our financial projections," Mr. Cormick said. The Lviv refinery, which specializes in the production of lube oils for the Ukraine market, is willing to pay a premium price for the kind of high quality crude available from Aktash. "Our crude has the special characteristics required for lubricants lubricants preparations for the lubrication of passages to reduce frictional injury, e.g. oily preparations, including petroleum jelly, lanolin or water-soluble preparations such as methyl cellulose. and other naphthene-based products," Mr. Cormick said. This is the first contract for the sale of oil from Epic's Crimean project. The Company expects its first delivery of Aktash crude under the contract will occur during March. After a period of initial sales, and subsequent to increased production, Epic intends to negotiate long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts with the Lviv refinery and other buyers. Epic is drilling and testing four confirmation wells in the Aktash Field. "We expect production and our associated cash flows to increase rapidly as we develop this first field, which has an estimated 8 million barrels of recoverable oil. And, as long as local refineries are willing and able to pay for our crude at world market prices with hard currency, we believe it's in everyone's best interest to continue selling Epic's production within Ukraine. Of course, as our Crimean project moves along and production increases, we will eventually be selling our products on world markets," Mr. Cormick said. Epic holds a 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. to explore and develop oil and gas resources in an 11,000-square-mile region. Epic estimates a potential for more than 1.3 billion barrels of oil equivalent in the region, where oil and gas have already been discovered. -0- NOTE TO EDITORS: The Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). has neither approved nor disapproved the information contained herein. CONTACT: Epic Energy Inc. Vancouver Office, (604) 681-4653 or Houston Office, (713) 537-2552 or Ron Cormick, (713) 806-1194 |
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