Strat Petroleum Announces Agreement for Financing to Drill First Well at Ementajevskoje Oil Site
via COMTEX
March 15, 2005
TORONTO, Mar 15, 2005 (BUSINESS WIRE) --
Strat Petroleum, Ltd. (National Quotation Bureau: SPRL)
Strat Petroleum, Ltd. today announced the finalization of an agreement to receive funding to develop the first well at the Ementajevskoje field and complete a feasibility study of the site. The agreement finalized with the Aurora Capital Shefa Fund LP, allows the Company to immediately draw up to $1.5 million for the completion of drilling of the first well and provide working capital. The agreement allows Aurora Capital to participate in the project under one of two alternatives to be finalized at the completion of the feasibility study.
Under alternative one, Aurora would earn a 33% interest in the first well and upon 100% return of capital, its interest would be reduced to 25% for the life of the well; Alternative two would allow Aurora the right to a 5% royalty on gross revenues from well production for the life of the well and 10% in warrants of the invested amount to be exercised 12 months after investment at a 50% discount to market.
Strat Petroleum, Ltd.'s strategy is to enhance shareholder value through the acquisition of oil & gas properties with proven reserves or producing/capped wells. Should you wish any additional information on our projects or management team, please visit our website at www.stratpetroleum.com or contact our Investor Relations office. Due to the volume of interest we will make every effort to respond as promptly as possible.
Statements made in this press release regarding the Company's or management's intention, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; uncertainties of completing business transactions; uncertainties of raising necessary capital; no control over long term pricing; possible reductions in demand for our products and services due to competition or changes in industry conditions or political environment; changes in the nature of energy regulation in the Russian Federation, the United States and other countries; political risk; currency exchange risk; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; reliance on management and management contacts; and other risks that may be referenced from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE: Strat Petroleum, Ltd.
Strat Petroleum, Ltd. Kathy Bassi, 1-905-714-0058 www.stratpetroleum.com
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