DALLAS, Aug. 1, 2006 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that it is continuing with the due diligence phase of its announced deal with CNPC (Hong Kong) Ltd. (CNPC-HK) and now expects the deal to close during August.
Continental and its partner, GeoPetro Resources Company, entered into a Letter of Intent (LOI) in July with CNPC-HK to farm-out a 70% stake in its Continental-GeoPetro (Bengara-II) Ltd. subsidiary and its Bengara-II Production Sharing Contract in East Kalimantan, Indonesia.
Closing is subject to a definitive farm-out agreement providing for the detailed commercial terms of the deal not already agreed in the LOI and also subject to a joint operating agreement to provide for joint petroleum operations in the Bengara-II PSC. Closing is also subject to completion of remaining legal and financial due diligence and to obtaining all necessary approvals.
About CNPC (Hong Kong) Ltd.:
CNPC (Hong Kong) Limited is a 52% owned subsidiary of the China National Petroleum Company based in Beijing, PRC. The remaining 48% is publicly held. CNPC (Hong Kong) Limited is based in Hong Kong and its shares trade on the Hong Kong Stock Exchange under the listing number 0135.HK. For further information, please visit their web site at www.cnpc.com.hk.
About GeoPetro Resources Company:
GeoPetro Resources Company has been Continental's partner in CGB2 and the Bengara-II PSC since 2000, owning a 40% share. GeoPetro is based in San Francisco and its shares trade on the Toronto Stock Exchange under the symbol GEP.S. For further information, please visit their web site at www.geopetro.com.
About Continental Energy Corporation:
Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com .
No securities regulatory authority has either approved or disapproved the contents of this news release.
Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the US Securities Exchange Commission.
For more information please contact Jim Eger at 877-762-2366, Suite 1200, 14001 Dallas Parkway, Dallas, Texas, 75240