Santa Ana, CA (PRWEB) August 12, 2005 -
NRG Resources, Inc. (ÂNRGÂ or the ÂCompanyÂ), a privately held, independent energy company, today reported that it has entered into a definitive agreement to acquire Munaisystem INK. Munaisystem INK is a Kazakhstan enterprise that owns a license to explore for oil and gas in the oil rich Aral Sea Region.
NRG has agreed to acquire a controlling interest in Munaisystem INK, owner of Kokaral Munai, and a concession in the Kzil-Ordinskoy Area of the Aral Sea Region of Kazakhstan. Upon closing, which is scheduled for September 10, 2005, Munaisystem INK will become a subsidiary of NRG. The Company plans augment its existing industrial and commercial lubricants business by prospecting and producing in the Aral Sea Region, under a concession license granted by the Ministry of Power and Minerals of the Republic of Kazakhstan. The licensed oil and gas field is approximately 2400 square kilometers, covering the Kokaral Peninsula in the north part of Aral Sea. The Licensed territory was originally released by the Kazakhstan government on July 7, 1997 to Kokaral Munai LLP, with a grant of exclusive rights on exploration and production for hydrocarbons within the Kokaral area. Subsequently, Kokaral Munai LLP was acquired by Munaisystem INK.
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 licensed territories. Geotex OJSC has performed geophysical work (2D seismic survey 1989 through 1991, and in 1998 Â 150km.) The studies identified two large structures at the depth of 1500-2500m, indicating potential oil, and gas at the depth of less than 1500 meters. Within the licensed area, there are two complexes (Eocene and Jurassic) showing potential for hydrocarbons accumulation. According to the due diligence material submitted in connection with the acquisition of Munaisystem INK, KokaralÂs predictable resources are estimated to be 38 Million tons. The studies are still in a relatively early phase, but indicate promise, states NRG Director and renowned Kazakhstan geologist, Yedil Kassymov.
The Kokaral block occupies approximately a one sixth of the Aryskumsky trough and has 4-5 fields with average resource in 5-15 million tons of conditional propellant, explains Kassymov. The Kokaral license territories take advantage of existing and rapidly developing transportation infrastructure. The licensed territories are located in less than 100 km from Aralsk Railway Station. The Bukhara-Ural Pipeline is in the western part of the area, in 75 km from its center. The Chinese National Oil Company is currently building an oil pipeline within 150 km of the concession, linking Kenkiyak and Kumkol fields, and going into China. Therefore, it appears that oil and gas could be efficiently transported from Kokaral (oil by railway through Aralsk Station and/or by Kenkiyak-Kumkol Pipelines, while gas could be transported by the Bukhara-Ural Pipeline). By acquiring valuable oil and gas exploration rights, NRG is poised become a serious participant in the international oil and gas exploration business, commented Serge Lipatov, Director of NRG and Senior Executive of the Russian Railroads, the largest corporation in the Russian Federation, employing approximately 1.2 million people. The U.S. Department of State estimates that Kazakhstan will be one of the top 10 oil producing nations in the world by 2015. We hope to position our selves to play a key role in developing and delivering KazakhstanÂs vast energy resources to the world energy markets,Â states Tony Vanetik, Chairman & CEO of NRG.
Kazakhstan declared its independence on December 16, 1991. Prior to that date, the country was part of the Soviet Union. Kazakhstan is a constitutional republic with a strong presidency. The 2003 population was 14.8 million people. Slightly over half of the population lives in urban areas. A bilingual country, KazakhstanÂs ÂofficialÂ language is Kazakh, however Russian is routinely used, and English is becoming more prevalent in business. The majority of the population is ethnic Kazakh. Approximately 46% of the population is Sunni Muslim (but is predominantly secular), 45% Russian Orthodox, and 9% practice other religions. The literacy rate in Kazakhstan is over 98% as compared to 97% in the United States and 63% in Saudi Arabia. The country covers 2.7 million square kilometers, making it the ninth largest country in the world. The closest neighbors are Russia to the north, China to the east, Kyrgyzstan, Uzbekistan and Turkmenistan to the south with the oil rich Caspian Sea on the east border of the country. To expand its infrastructure, Kazakhstan is building a pipeline leading to China that is scheduled to be completed in December of 2005. The Kazakhstan government estimates the country will be exporting 8 million barrels of oil per day by 2020.
NRG Resources, Inc., a Nevada corporation, is an oil and gas exploration and oil products marketing company, based in Nevada and California. The development stage Company is pursuing opportunities domestically and in new energy markets. The Company markets a proprietary line of lubricants for industrial and commercial application and has recently entered the international energy resources market.
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" Âplan,Â Âhope, Âintend,Â 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 Kokaral; our opinions about prospects of Kokaral or the region where it is located; our ability to continue to operate and/or develop our existing lubricants business; 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 NRG Resources, 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 Kokaral, 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 continued operations of our lubricant business, our future capital needs, our ability to retain qualified management and consultants, etc.
For further information regarding this press release contact NRG Resources, Inc., Corporate Communication, attention Mr. Heip ÂAlexÂ Trinh on 714-510-6152. or via email firstname.lastname@example.org
NRG Resources, Inc.
Hep ÂAlexÂ Trinh
Vice President, Business Development
Tony Vanetik, CEO
3720 South Susan Street
Santa Ana, CA 92704