Teton Petroleum Updates Russian Operations
13 May 2004 - 10:00PM
PR Newswire (US)
Teton Petroleum Updates Russian Operations DENVER, May 13
/PRNewswire-FirstCall/ -- Teton Petroleum Company ("Teton") , an
independent oil and gas exploration and production company with its
principal operations in Russia, today announced additional
information on the pending sale of Goloil and the potential
purchase of additional oil fields. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030611/TETONLOGO ) On April
12, Teton announced the sale of its interest in the independent
Russian oil company, Goloil. Subject to shareholder approval at the
next annual meeting, Teton will sell its 35.3% interest to another
Goloil shareholder, the Russian independent oil producer OAO NK
RussNeft. The purchase price for Teton's interest in Goloil,
including outstanding loans to be repaid, is $15 million in cash
and will also result in the elimination of $9.9 million of Teton's
share in net Goloil liabilities. As a result of the sale, Teton
expects to record a gain on the disposition of approximately $12
million. The proceeds from the sale of Goloil, together with a
portion of the proceeds from last year's equity offering, will be
available to apply towards possible new producing acquisitions in
Russia. Teton anticipates having approximately $20 million in cash
to apply towards new acquisitions. Further information on the sale
of Goloil will be provided in the Company's annual proxy statement,
which will be released shortly. "Goloil was a great accomplishment
for Teton. We now feel that in order to improve our financial
performance and continue to grow the Company as planned, we need to
deploy our capital towards larger, more profitable fields that will
be jointly or fully operated by Teton," stated Karl F. Arleth,
Teton's President and CEO. In an April 5th press release, Teton
announced that it had signed an agreement to acquire a field that
would net 3,400 barrels of daily production. The transaction is
based on an agreement between Teton and Samson International
Resources ("Samson") for the purchase of Samson's 52% interest in
ZAO Pechoraneftegas (PNG) located in the Komi region of Siberia.
Since then, Samson's partner in PNG, Vitol Cypress ("Vitol"), has
exercised its preferential right to acquire Samson's interest in
the property. Teton's $3.85 million deposit has been fully
refunded, but the contract remains in effect. In the event that
Vitol does not close on Samson's 52% interest, Teton and Samson may
proceed with the contemplated transaction subject to Teton's due
diligence. As part of the execution of its business plan, Teton is
in preliminary negotiations for the acquisition of new oil fields.
However, no agreements have been signed. This Press Release may
contain certain forward-looking statements, including declarations
regarding Teton and its subsidiary's expectations, intentions,
strategies and beliefs regarding the future. All statements
contained herein are based upon information available to Teton's
management as at the date hereof and actual results may vary based
upon future events, both within and without the control of the
Teton's management.
http://www.newscom.com/cgi-bin/prnh/20030611/TETONLOGO
http://photoarchive.ap.org/ DATASOURCE: Teton Petroleum Company
CONTACT: Gillian D. Kane, Vice President, Investor Relations of
Teton Petroleum Company, +1-970-870-1417, Web site:
http://www.tetonpetroleum.com/
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