TORONTO, July 22, 2005 (PRIMEZONE) -- Strat Petroleum, Ltd. (Pink Sheets:SPRL), an emerging exploration and development company focusing on oil and gas properties in the Russian Federation, today announced it has reached an agreement to acquire a 30% interest in an oil and gas service company located in the Tyumen Region of the Russian Federation. The Tyumen Region is known as the "energy center of Russia" because of its huge hydrocarbon resources.
The Tyumen Region has a population of over 3 million people. It has an area of 1.4 million km2 (8.4% of Russia's total area), which is equivalent to the combined areas of Germany, France, Italy, and Great Britain. The Tyumen Region stretches in the meridian direction of the Artic Ocean to the present Kazakhstan border. It actually divides the territory of the Russian Federation into two parts: the European part and Ural to the west, Siberia and Far East to the east.
"We believe we will generate immediate revenues and positive cash flows from this acquisition," said H. Sam Hyams, President and CEO of Strat Petroleum. "The Tyumen Region has been one area of the Russian Federation we have targeted on behalf of Strat due to its vast oil and gas reserves. Strat Petroleum will continue to focus on these types of companies which we find to be a fit for our business model, in fact, we are currently in negotiations with one of Russia's largest oil companies to provide services to one of the largest oil field's in the country. We expect negotiations to be completed in the near future at which time we will be able to disclose further details."
A major part of the Russian Federation's oil and gas reserves are concentrated in the Tyumen Region here in the extraordinary Samotlor, Kholmogorsk, Krasnoleninsk, and Fedorov oil fields and the Urengoi, Medvezhye, and Yamburg gas fields. In the estimation of specialists, high-grade hydrocarbon zones are present on the Gydan Peninsula and in the Karsk Shelf area of Yamalo. There are also great prospects associated with development of the Uvatsk project in the southern part of the region.
About Strat Petroleum
Strat Petroleum is an emerging exploration and development company focusing on oil and gas properties in the Russian Federation. Strat completed an agreement to acquire an 80% interest in a Northern Orenburg oil and gas property in Russia, which has proven reserves of 11.25 million barrels of crude oil and probable reserves in excess of 25 million barrels. Strat has also signed a Memorandum of Understanding to acquire 50% of Saraktasch Oil & Gas Drilling Expedition Co., a drilling and exploration company. For more information, please visit the company website at www.stratpetroleum.com. The company's new phone numbers are: 905-761-9169 (main), 416-628-8018 (fax) and 646-216-9751 (U.S.).
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.