TORONTO, Aug. 25, 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 details of its multi-million dollar contract to service Yuganstneftgaz, the second largest oil site in the Russian Federation. The contract, which is part of a joint venture with Panorama-TEK for the servicing of 13 wells, is valued at approximately $6,500,000 for one year with a performance-based option for an additional two years.
The average daily production from the Yuganstneftgaz fields exceeds 1 million barrels, which is about 1.6% of the world total. The fields have approximately 400 producing wells and significant opportunity for additional development of reserves. Recently, the Yuganstneftgaz fields were purchased by Rosneft, a 100% state owned company and the third largest oil producer in the Russian Federation after the acquisition of Yukos' assets, the prize of which is the Yuganstneftgaz and its oil sites.
"The seven-figure agreement with Rosneft is going to help us gain traction in the Russian Federation oil and gas industry," stated Sam Hyams, CEO of Strat Petroleum. "We're confident we will be able to generate significant revenue which should give us the opportunity to initiate servicing at other properties in the near future."
Rosneft has an established growth plan which resulted in investment of close to US$1.5 billion in exploration and development, and production of over 150 million barrels of oil and gas condensate in 2004, which is expected to increase to 875 million barrels by 2015.
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 acquired 30% of a new oil and gas drilling and servicing joint venture established with Panorama-TEK. For more information, visit 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.