NEW YORK, Sept. 7, 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 a financing agreement with two private investment groups for up to $5,000,000 in gross proceeds. The agreement calls for the funds to be obtained in stages with completion of the full $5 million scheduled for the end of November, 2005. The financing provides Strat with working capital for the joint venture with Panorama-TEK, along with evaluation and production at other oil properties.
"We are committed to executing our business plan and securing this financing comes at an excellent time for us since we have a number of outstanding opportunities within the Russian Federation that will give us a distinct advantage over our competition," stated Sam Hyams, CEO of Strat Petroleum. "We are aggressively moving forward with a number of exciting oil and gas development and drilling projects which we hope we can announce shortly. Focusing on creating further shareholder value and communicating with our loyal shareholders are also top priorities for us as well."
Recently, Strat announced a $6.5 million joint venture with Panorama-TEK for the servicing of 13 wells, at Yuganstneftgaz, the second largest oil site in the Russian Federation. The contract is for one year with a performance-based option for an additional two years plus an opportunity to service between three and four times the number of wells. The average daily production from the Yuganstneftgaz fields exceeds 1 million barrels, which is about 1.6% of the world total.
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 http://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.