Nevtah Acquires 50% of Pamco; US Department of Energy to Test Oil and Gas Technology.

PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--March 2, 1999--Nevtah Capital Management Corp. ("Nevtah") (NASD OTC:NTAH) and Petroleum Asset Management Co. ("Pamco") have agreed to shift their current priorities and focus from the acquisition and production of stripper oil well leases to the continued development and sales of Pamco's patented technology to stripper oil and gas well producers.

The technology will reduce stripper well operating costs to approximately $7-$8 per barrel as well as increase production. The nations 433,171 stripper wells produced more than 350 million barrels of oil in 1997 -- 25% of all the oil produced in the United States (excluding Alaska).

The Department of Energy ("DOE") is sending a team of engineers to review Pamco's latest system developments. Pamco has agreed to install a stripper oil and gas system at the DOE's Rocky Mountain Oil Field Testing Centre in Wyoming. The DOE will then publish the results and information in national publications and its web site. Testing to date has shown that Pamco's patented system has reduced operating costs by 50-80% on stripper oil wells and increased production from 25-100%. Preliminary testing on stripper methane gas wells has also shown significant cost and efficiency savings in the removal of water and other operating costs by eliminating the pump jack and utilizing Pamco's pumping system.

As a result of the change in focus, Nevtah and Pamco have finalized an agreement to revise their Joint Venture Agreement as previously announced. Nevtah will now acquire 50% of Pamco. In addition, Nevtah has acquired the exclusive rights to Pamco's technology for all of Europe for all stripper oil and gas well applications as well as environmental uses in cleaning up contaminated ground water.

The primary marketing focus will be to methane gas producers, which is currently the most profitable and the fastest growing segment of the energy sector. The price of methane gas has proven to be much more stable than the price of oil, and there is an immediate market for the Pamco technology in this area. At an anticipated depth of 2,500 feet, there are at least 200,000 stripper gas wells in the United States alone. There are thousands drilled yearly around the world as countries are now supporting this newly found energy source.

Methane gas is cleaner than natural gas and is generated primarily from beds of coal that release gas as pressure is released on the beds. The process of drilling makes this gas available for production, but in almost all cases, water encountered during the drilling process hinders production. Current removal procedures include an assortment of downhole pumps, as well as pump jacks. The Pamco system provides a cost-effective alternative that creates the same cost efficiencies that are found on oil applications. The added benefit of "active" field monitoring capabilities by satellite makes the Pamco system far superior to any known competitor.

According to the often-cited Lundberg Survey, current oil prices are at their lowest level in 25 years and gas prices at their lowest level in 50 years. As a result, Nevtah feels that the various Tower Oil LLC projects are uneconomical at this time and has decided to suspend its funding of Tower Oil International LLC until oil and gas prices recover. Oil prices were $22 per barrel in 1997 when Nevtah signed its development agreement with Tower Oil LLC. Since then, oil has dropped to less than $12 per barrel and as a result, there has been very little interest from the investment community in funding oil and gas development projects. In addition, Nevtah has also reevaluated its Azerbaijan Geological Oil Report and determined that the current low oil prices make this project uneconomical. The Company has therefore decided to drop its option to acquire the oil lease in Azerbaijan.

Once again, the Pamco pumping and monitoring system has proven to reduce stripper oil production costs from about $14 per barrel to approximately $7-8 per barrel. Similar cost savings are also anticipated in the production of stripper gas wells. Conservative sale estimates of 5,000 stripper oil well systems would generate $32 million in revenue with an additional $20 million in revenues generated from the sale of 2,000 stripper gas well systems.

Nevtah is confident that its current strategy of focusing on the marketing of Pamco's patented technology will have a major international impact on oil and gas production and costs and provide significant rewards for the Company and its shareholders.

On behalf of the Board of Directors

Daniel P. Kesonen, President