HOUSTON, Sept. 9, 2005 (PRIMEZONE) -- Coastal Holdings, Inc. (Pink Sheets:CSJJ), today announced that it has reached preliminary agreement to form a joint venture with a Russian oil and gas company.
Under the terms of the agreement, Coastal Holdings will assist in the financing of the joint venture by sourcing investment capital from the equity market and in identifying a suitable location for the development of an oil refinery. In return for its investment, Coastal Holdings will hold a percentage working interest in the joint venture. The joint venture involves the development of an oil refinery in Eastern North America to expand the refining capacity of the Russian oil and gas company. This established company currently has leases on several crude oil slits and has signed contracts to supply major refining factories and gas stations in Russia. The Russian company presently supplies mazut and gasoil to Eastern Russia and is licensed to export petroleum products.
Vice President of the Russian company, Mr. V. Politanskiy stated: "We are pleased to be working with Coastal Holdings on this major project and with their help the development of our company will proceed more rapidly than at present."
Coastal Holdings CEO Andrea Cortellazzi stated: "This is a very attractive investment to add to Coastal Holdings' portfolio. This is a first step for the company towards the establishment of an oil and gas division, which we foresee as a profitable one for shareholders. The name of the Russian oil and gas company and proposed location for the development of the oil refinery will be disclosed to shareholders upon completion and signing of a MOU."
For more information please contact CEO Andrea Cortellazzi at (514) 288-9699 or visit the Company website at www.coastalholdings.com.
Forward-Looking Statements
Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.