ORLANDO, Fla., Feb. 13, 2013 (GLOBE NEWSWIRE) -- IAHL Corporation (Other OTC:IAHL) is pleased to announce that further negotiations of a previously announced letter of intent on October 10, 2012, between its wholly-owned subsidiary, Altenesol Colombia S.A.S. ("Altenesol"), and Geoproduction Oil and Gas Company of Colombia ("Geoproduction"), a wholly-owned subsidiary of Canacol Energy LTD (Canacol), (TSX:CNE) (BVC:CNEC) has resulted in a signed 15 year natural gas supply contract for the Nataly 1 LNG project in Colombia. The contract is for the supply of 17 million cubic feet per day (MMCFD) of natural gas at a price of US$4.90 per MCF agreed to by both parties with an annual price escalation of 2% commencing in the second year of production under the contract.
The contract is subject to the fulfillment of a number of conditions precedents, which are in process, by both Altenesol and Geoproduction. The principal ones are converting existing customer LOIs to take or pay contracts, finalizing project funding, having the Nataly 1 LNG plant operational within the guidelines of the agreement as well as Geoproduction's planned drilling activities on the basis of the 3D seismic results and the certification of additional reserves at the La Esperanza block.
"We are excited about working with Canacol in this history making contract which will be the longest gas contract in Colombia. This is a major milestone for our project which is the first of several more to come over the next quarter. We were able to leverage the deep experience of our Board Member, Stuart Jara, in negotiating complex long term supply contracts to ensure we secured a beneficial and bankable agreement," said Nelson De La Nuez, CEO of IAHL.
"As a member of the board, it was my pleasure to take the lead in the negotiations of the contract, working with the Altenesol team to draft and finalize the deal. This agreement is an important milestone in the delivery and establishment of the vision created by the CEO and the Board," said Stuart Jara, IAHL Board of Director.
Altenesol Colombia SAS's project will generate over US$70 million in average annual revenues through its subsidiaries (Altenesol LNG Colombia, SAS; TransCryogen LNG Colombia, SAS and Altenesol Regasification Systems, SAS) which will produce LNG at the Nataly 1 plant, transport the LNG to our customers and re-gasify the LNG at each customer's location. Over the 15 year term of the project, the natural gas purchased from this contract with Canacol will generate in excess of US$1 billion. "Future plans include four additional LNG Plants in Colombia within the next 7 years after the completed construction of Nataly 1," advised Nelson De La Nuez, CEO of IAHL.
IAHL is also pleased to announce that Altenesol has signed a contract to purchase 91 acres (37 hectares) of land adjacent to the Canacol well site (Jobo Station). The proximity to the source minimizes logistical costs and provides room for the expansion of the Nataly 1 LNG plant as well as extra space for vehicle transit, storage and maintenance. This also helps build Altenesol's plans to become a major player in the energy sector, bringing less expensive and cleaner fuel to areas in and out of Colombia.
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Certain information included in this press release constitutes forward-looking information under applicable securities legislation.
Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although IAHL believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because IAHL can give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things: the ability of IAHL to complete transactions described in this press release, the timely receipt of any required regulatory approvals, anticipated expenses, cash flow and capital expenditures, and economic conditions.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. IAHL undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. Actual results could differ materially from those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development and production; delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to the development of the project or capital expenditures.