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EQUITY OIL COMPANY ANNOUNCES SIGNING OF PRODUCTION SHARING CONTRACT FOR EXPLORATION IN EASTERN SIBERIA

 SALT LAKE CITY, Jan. 5 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) today announced that Symskaya Exploration Company, Inc., an 80 percent owned subsidiary of Equity, has signed a Production Sharing Contract with Yeniseyneftegasgeologia and Yeniseygeophysica (State Geological Enterprises of the Russian Federation Committee for Geology and Utilization of Natural Resources collectively referred to as ENI) granting Symskaya the exclusive right to explore, develop and produce hydrocarbons on a Contract Area totaling 1,100,000 acres in the Yeniseysk district of the Krasnoyarsk Krai in the Russian Federation. The contract has a primary term of 25 years.
 Under the contract, Symskaya will provide funding for all exploration and development and will recover the costs from 80 percent of hydrocarbon production after payment of an 8 percent royalty. The remaining 20 percent of hydrocarbon production, net of royalty, will be shared by Symskaya and ENI based on the rate of production. Minimum expenditures required under the contract total $12,000,000 during the first five years of the contract term with a minimum of $1,000,000 to be spent in the first contract year.
 The contract will go into effect upon the issuance of a license for exploration, development and production by the Russian government. Symskaya has initiated the application process for the issuance of the license which requires Russian Federation and Krasnoyarsk Krai governmental approvals.
 Symskaya is also negotiating a drilling contract with ENI to provide for the drilling of the initial exploratory well in the project. A Russian drilling rig, which will be augmented by western equipment, is now on location in the Contract Area on a structural feature indicated by seismic data to be 35 miles long and six miles wide. The drilling of the first well will not commence prior to the issuance of the license.
 Equity Oil Company, headquartered in Salt Lake City, is an independent oil and gas exploration and development company with operations in nine western states and Canada.
 -0- 1/5/93
 /CONTACT: Fred H. Evans or Paul M. Dougan of Equity Oil Company, 801-521-3515; or Marisa A. Heine or Jennifer R. Wall of D. F. King & Co., Inc., 212-269-5550, for Equity Oil Company/
 (EQTY)


CO: Equity Oil Company; Symskaya Exploration Company, Inc. ST: Utah IN: OIL SU: CON

SH-LR -- NY001 -- 1559 01/05/93 08:58 EST
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Publication:PR Newswire
Date:Jan 5, 1993
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