Fountain Oil to develop Ukraine oil field.HOUSTON--(BUSINESS WIRE)--May 31, 1995--Fountain Oil Inc. ("Fountain"), (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 NMS See NetWare Management System. : GUSH), announces it has signed an exclusive agreement with the Lviv Regional Council which contemplates the formation of a Joint Venture between Fountain and the Ukraine National Oil Company, for the development of four oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. in Western Ukraine Western Ukraine may refer to:
Fountain acquired its opportunity to participate in the Western Ukraine Project pursuant to an Agreement under which Fountain has paid a total of $500,000 as a contribution to project development expenses incurred to date. Upon signing the Joint Venture Agreement, Fountain is obliged o·blige v. o·bliged, o·blig·ing, o·blig·es v.tr. 1. To constrain by physical, legal, social, or moral means. 2. to make further payments comprising $500,000 cash and the issue of 175,000 shares of Fountain common stock. Upon achieving defined production levels from the first four wells in the initial development program, Fountain will issue a further 375,000 shares of Fountain common stock. The Western Ukraine Project is located within Europe's oldest oil producing region. The four oil fields which are to be the subject of the Fountain Joint Venture have not been fully developed previously because the area is environmentally sensitive and drilling restrictions have been imposed. Fountain intends to develop the fields by drilling from locations outside of the restricted area and using other western technology to achieve an economicaly sound and ecologically sustainable project. The current production, which is mainly derived from one field, is approximately 280 barrels of oil per day. A recent independent engineering study indicates that this field has remaining recoverable proven reserves of approximately 60 million barrels of oil. In addition, there is significant potential for additional reserves in each of the four fields, the extent of which will be determined by the proposed development program. The terms of the Joint Venture have yet to be finally agreed. However, Fountain currently expects to assume responsibility for procuring the financing for the Western Ukraine Project and expects to receive an interest of not less than 45 percent in the increased oil production from the four oil fields. The amount of Fountain's direct investment in the Western Ukraine Project will depend on the outcome of the Joint Venture negotiations and the chosen development program and is currently anticipated to be less than $5 million. Fountain will announce the final terms of the Joint Venture as soon as it has been concluded. Commenting on the announcement, Oistein Nyberg, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated "We are delighted to be one of the first American First American may refer to:
Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally in the Ukraine using western technology - We are very excited by the potential for this project." Fountain Oil Incorporated is actively acquiring and developing a portfolio of oil and gas properties. The company has also developed and is marketing a patented, electrically enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] technology used to increase the production of paraffinic oil and heavy oil. CONTACT: Fountain Oil Inc. Oistein Nyberg, 011-441-71-235-2295 (London) or Liviakis Financial Communications Inc. John M. Liviakis, 916/448-6084 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion