Angus Energy Corp. Announces Letter of Intent for $15 million Additional Barnett Shale Financing with LUKOIL
Energy Editors/Business Editors DALLAS--(BUSINESS WIRE)--Aug. 13, 2004--Angus Energy Corp. (Nasdaq:AGSC) (www.angusenergycorp.com) today announced that it has signed a Letter of Intent with the Russian joint stock company, Kogalimneftegas, a subsidiary of LUKOIL, with operations in the Russian Federation, (www.lukoil.com), to provide $15 million in additional financing for the development of Angus Energy's Barnett Shale assets.
The Agreement acknowledges Kogalimneftegas' interest in Angus Energy's Barnett Shale properties and in pursuing financing opportunities available through the company. The proceeds from the $15 million financing will be used by Angus for the development of their Barnett Shale properties and general and administrative expenses.
"This alliance with LUKOIL, will bring the company's financial resources to $30 million, giving Angus an even stronger acquisition and exploration capability in an extremely attractive and expanding natural gas play," said Brent Nelson, Director of Angus Energy Corp. "Angus is currently positioned as a major stakeholder in the Barnett Shale and with this partnership we can further take advantage of opportunities for expansion."
"Developing the gas sector has become a crucial part of LUKOIL's growth strategy," said LUKOIL Vice President Vladimir Nekrasov. "Our company has defined a plan for financing and developing natural gas facilities through 2005 and this partnership with Angus fits perfectly into this plan."
LUKOIL's main activities are oil & gas exploration and production, and production and sale of petroleum products. The Company is the leading vertically integrated oil company in Russia and the largest private oil company in the world by proven reserves, accounting for roughly 1.5% of global oil reserves and 2.1% of global oil production. LUKOIL dominates the Russian energy sector, accounting for 19% of total Russian oil production and 19% of total Russian oil refining. LUKOIL proven reserves at the beginning of 2004 were 15,977 million barrels of crude oil and 24,473 billion cubic feet of natural gas, totaling 20,056 million barrels of oil equivalent.
About the Barnett Shale The Barnett Shale gas play is the largest natural gas field in Texas and a primary supplier to the North American gas market. It spans several thousand square miles across the Fort Worth Basin in north central Texas. Since the mid-1990s over 3,000 wells have been drilled in the field. The United States Geological Survey (USGS) estimates the Barnett may hold over 26 trillion cubic feet (TCF) of recoverable natural gas with production in the region currently exceeding 30 billion cubic feet (BCF) per month.
About Angus Energy Corp.
Angus Energy Corp, (www.angusenergycorp.com) is a Dallas-based independent energy company engaged in oil and gas exploration with significant lease holdings in the Barnett Shale. For more information, please contact Patty Dickerson, Investor Relations, at 972-937-1654, or Roger Kelly 866-582-0024, or visit the Company's website at http://www.angusenergycorp.com.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Exchange Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements included in this release other than statements of fact are forward-looking statements that involve risks and uncertainties.