Santa Ana, CA (PRWEB) April 9, 2005
Turan Petroleum, Inc. (OTC: TURP), an independent energy exploration and development company, today reported that it has entered into a definitive agreement to acquire Turan EnerPetroleum, a Kazakhstan limited liability company that owns a license to explore for hydrocarbons in the Republic of Kazakhstan.
Turan Petroleum, Inc. (the ÂCompanyÂ) will acquire 100% of Turan EnerPetroleum, which holds a license from the government of Kazakhstan to explore for hydrocarbons in the ARIS region. Upon closing, which is scheduled for April 30, 2005, Turan EnerPetroleum will become a wholly owned subsidiary of the Company. The Company plans to prospect and produce in the ARIS region under a concession license granted by the Ministry of Power and Minerals of the Republic of Kazakhstan. Turan EnerPetroleumÂs concession license was granted for an extendable 25-year term (beginning in 2001). Following closing, the CompanyÂs ARIS territories concession license will cover approximately 22,000 square kilometers in the South Kazakhstan Kizilordinskoy regions.
Initial geological studies have been completed by third parties, and show the potential of locating substantial amounts of recoverable oil and gas products inside the CompanyÂs concession license territories. The studies have located over 50 geological formations that are typically oil or gas bearing. Northeast of the ARIS concession, gas has been discovered in an area known as Amangeldy. The ARIS concession contains similar geological formations as those found to produce hydrocarbons in the Amangeldy fields. Southeast of the concession site (approximately 120 km), oil is being extracted near the city of Tashkent. Northwest of the ARIS site (approximately 250 Â 300 km) large oil deposits have been discovered in fields known as Kymkol and Zhanzhol. The main hydrocarbon deposits in the ARIS site are expected to be associated with salt deposits. Scores of these deposits have been identified within the ARIS site. The same Pre-Caspian cavity that is producing gas in Karachaganak and oil in the Tenzig region are connected to the ARIS site. Salt structures at similar depths as those producing in Tenzig and Karachaganak are also believed to exist within the ARIS site, based on the information contained in the initial geological reports. The Tenzig field contains one of the largest proven oil deposits in the world.
The Company intends to undertake further geological testing, conduct exploratory drilling, and extract hydrocarbons from the ARIS site. Following extraction, the Company plans to efficiently deliver its oil and gas production to both local and world markets. The South Kazakhstan region, which includes the Turan EnerPetroleumÂs ARIS concession, contains population of about 2 million people. Currently, natural gas is delivered to the region from Uzbekistan, with the local supply being subject to shortages. The infrastructure to deliver natural gas locally is in place and a demand for locally produced gas exists. The regions where Turan EnerPetroleumÂs concession license is located already have infrastructure in place, including asphalt roads, railways stations, with refineries located a relatively short distance from the ARIS site.
As recently as the 1990Âs Kazakhstan was not well known.. However, since then, the Republic of Kazakhstan has proven to be a significant player in the world oil market. During 2003 KazakhstanÂs oil exports were valued at more than $7 billion. Since 1993 US companies have invested over $6 billion in Kazakhstan. The U.S Department of State estimates that Kazakhstan will be one of the top 10 oil producing nations in the world by 2015. Robert VanDuren, TuranÂs President states, ÂWe are thrilled to complete these contract negotiations, and look forward to being a significant contributor to the overall hydrocarbon production levels in Kazakhstan.Â
Turan Petroleum, Inc., a Nevada corporation, is an oil and gas exploration and development company based in Nevada and California. The development stage Company is pursuing opportunities in new energy markets, focusing on the acquisition and development of oil and gas properties in Eurasia, and other resource rich regions of the former Soviet Union. The Company anticipates the need for additional capital during the next 12 months. The CompanyÂs common stock is traded Over the Counter under the symbol ÂTURPÂ.
This announcement contains forward-looking statements, which can be identified by the use of forward-looking terminology such as "may," "expect," "anticipate," "estimate," "continue," "believe" or other similar words. We have made forward-looking statements with respect to the following, among others: our goals and strategies; our ability to earn sufficient revenues to develop ARIS; our ability to continue as a going concern, our ability to comply with the closing terms of the acquisition agreement. These statements are forward-looking and reflect our current expectations. These forward-looking statements are subject to a number of risks and uncertainties, some of which are beyond our control. Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Turan Petroleum, Inc. believes the expectations reflected in such forward- looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Investors are cautioned that all forward-looking statements involve high risks and uncertainty, including without limitation, our limited operating history, the costs and risks of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, fluctuations in commodity prices, inconsistent application, interpretation, and enforcement of applicable Kazakh government taxes, and Kazakhstan Excess Profits Tax, currency exchange losses if Tenge depreciates against US Dollar, country and political risks, including diplomatic and political relations between US and Kazakhstan, costs arising from environmental liability, uncertain costs of drilling (oil producing fields located adjacent to ARIS, are not an indication that our drilling or related efforts will be successful), inability to drill wells that produce commercial quantities of oil and natural gas, shut-ins of connected wells resulting from extreme weather conditions, insufficient storage or transportation capacity or other geological and mechanical conditions, general market conditions, competition, oil and gas pricing, drilling programs and results, our future capital needs, etc.
For further information contact Turan Petroleum, Inc. Corporate Communications at 714-844-4674 or via email at [email protected]
Turan Petroleum, Inc.
Tony Vanetik, Chairman & CEO
Robert Van Duren, President
3720 South Susan Street
Santa Ana, CA 92704
email: [email protected]
Source: Turan Petroleum, Inc.
# # #