August 25, 2008
Capitan Energy Companies, LLC and Titan Resources Corporation Jointly Announce the Signing of Multiple Production Sharing Agreements With the Minister of Mining and Energy for Ethiopia
RENO, Nev., Aug. 25 /PRNewswire/ -- The Ministry of Mines and Energy ("MME") and Titan Resources Corporation ("Titan"), a US-based oil and gas energy company chaired by Nelson "Bunker" Hunt, signed two separate Production Sharing Agreements covering acreage in the Ogaden and Abay Basins in Ethiopia for the purpose of petroleum exploration and development.
The acreage awarded in the Ogaden Basin covers Blocks 1, 5, 10 & 14 (54,400 square kilometers) and the acreage in the Abay Basin covers Blocks 2, 3, 5 & 6 (48,421 square kilometers), a total of 25,396,710 acres.Minister of Mines and Energy Alemayehu Tegenu and Victor Nersesov, Secretary of Titan Resources Corporation, signed the agreements at the Sheraton Hotel in Addis Ababa, Ethiopia.
Prior to this ceremony, Titan and its operating partner, Capitan Energy Companies, LLC, formed a Dubai-based holding company, Petro Global International Holdings Limited, and incorporated a subsequent Dubai-based entity, Ethiopian Exploration and Production Limited ("EEP"), to hold the assets awarded by the MME to Titan as well as other oil and gas assets acquired by the company in the Middle East and Africa.
"Ethiopian Exploration and Production is fortunate to have won the tenders and have the sole and exclusive right to conduct operations in both of these Basins; the reserves are limitless," said Kerry Smith, Chief Executive Officer of Ethiopian Exploration and Production and present at the ceremony. "The exploration activity in the Ogaden Basin compares to Permian Basin, Yemen and Saudi Arabia fifty years ago; the exploration activity is in its infancy compared with the more mature basins elsewhere in the world," said Mr. Smith.
The initial term of the Exploration Period is the same in both basins, four years with two extensions of two years each. The Development and Production period noted in each PSA is 25 years with a possible extension of 10 years.
Ethiopian Exploration and Production Limited - A Dubai-based corporation formed by Titan Resources Corporation and Capitan Energy Companies, LLC for the exploration and development of oil and gas assets in the Middle East and Africa. EEP has offices in Dubai, Addis Ababa and the US.
Caption: Kerry Smith, CEO of Capitan Energy Companies, shakes hands with Alemayehu Tegenu, Minister of Mines and Energy for Ethiopia, while Sinknesh Ejigu, the State Minister of Mines and Energy, looks on.
CONTACT: Kerry W. Smith Ethiopian Exploration and Production Limited 00+1+575.937.8001 00+1+775.201.5528 [email protected]
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Capitan Energy Companies, LLC
CONTACT: Kerry W. Smith, Ethiopian Exploration and Production Limited,00+1+575-937-8001, 00+1+775-201-5528,[email protected]