TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) - 3P International Energy Corp. (the "Corporation" or "3P") (TSX VENTURE:DOH) is pleased to announce that the Corporation has entered into a Binding Letter of Intent ("LOI") with JSC "Nadra Concern" for the purchase of its wholly owned subsidiary JSC "Tysagaz" the title holder to four gas licenses in Ukraine: the Rusko-Komarivske, Stanivske, Korolivske gas fields, and the Uzhogorod exploration block in the Western Ukrainian's TransCarpathian region. If completed, the acquisition will provide immediate cash flow to the Corporation from the Rusko-Komarivske field and an asset base consisting of multiple fields with proven reserves and significant exploitation potential. 

The 3P team is excited by the prospects of this transaction given the strong operating base from which Tysagaz is currently operating. "Acquiring a proven reserve base with upside potential in today's market of approximately USD$8.0 per mcf gas and netbacks north of USD$6.0 per mcf after royalties and operating costs, should immediately provide returns to 3P and position the Corporation to become a significant player in the Ukraine," stated David Kahn, President and CEO of 3P.

Greg Cameron, Chairman of 3P added, "The proposed transaction is a great fit to our announced strategy of acquiring conventional assets with cash flow and significant reserves to compliment or growing unconventional portfolio, which is currently focused on acquiring and farming into lands with Coal Bed Methane ("CMB") potential. We are also pleased to be cooperating and expanding our relationship with such a well respected entity like Nadra."

Based on Tysagaz's approved and permitted development plan, five shallow wells will be drilled during 2011 and early 2012. Given existing data and historical stabilized flow rates of the current wells (in excess of 1,000 mcf/d), management is excited about the development potential for all four fields. Furthermore, after a review of the available data and the proposed development plan, 3P believes the potential combined production from all four fields could be in excess of 15,000 mcf/d after full development, and expects a 2011 exit rate of approximately 5,000 mcf/d.

According to the terms of the binding LOI, the potential acquisition remains subject to a 60-day due diligence period, the execution of a definitive agreement, and involves a total cash payment of US$17 million. Completion of the acquisition remains subject to receipt of all necessary regulatory approvals, including that of the Anti Trust Committee of Ukraine. 

About Nadra and Tysagaz

The Nadra Group Limited is a major oil and gas services company formed in the Ukraine in 1936 with the corporate mission of providing integrated geological and reservoir services to the oil and gas sector. The company provides numerous state of the art logging and seismic services including 3D seismic to many customers throughout Eastern Europe, Central Asia, Middle East and North Africa. They have in excess of 1,500 employees and have done much of the geological surveying and investigation of natural resources within Ukraine. The Nadra Group has and continues to play a large role in the oil and gas sector in Ukraine and acts as the official advisor to the President of Ukraine on providing concessions and licenses.

Tysagaz is an operating company, with all the permits, technical and human resources for oil and gas exploration, production and marketing. The company's head office is located in Uzhgorod-city (regional center of the Transcarpathian region). The company was setup to produce oil and natural gas with the initial focus being the Transcarpathian region of Western Ukraine. 

The Transcarpathian Basin is a 7,500km2 region bordering Hungary, Slovakia, Romania, and a subset of the prolific Panonian and Carpathian basins. Only 3% of this area has been explored in a detailed manner, with probable estimates of natural gas exceeding 5 TCF in relatively shallow (400 – 1,750m) enclosed anticlines.

At present, Tysagaz has one of the larger volumes of proven reserves within the Ukraine confirmed by an international reserves audit performed by Miller Lents Ltd of Houston Texas in 2006. With a long term marketing agreement to sell its gas, and access to the major European Pipeline, 3P believes there to be strong leverage within the Tysagaz platform.

Tysagaz's core assets are the 4 natural gas licenses as per the following table. The portfolio being acquired by 3P includes production, operations and infrastructure adjacent to one of Ukraine's main natural gas pipelines into Europe. It is important to note that the area has been well studied and documented, relatively shallow and offers a nice balance of proven reserves with the ability to convert a considerable amount of possible reserves to the proven/probable category fairly quickly.

Rusko-Komarivske   7   2 producing wells / 10 wells drilled in the past and tested confirming field potential / wells all showed stable rates > 1000 mcf/day.   750-1350 M / 5 multiple sands / Well cost $750 K.   1P – 33.9
2P – 18.9
3P – 14.46

TOTAL = 67.26
  Primary asset. Well documented and studied. Low risk.
Stanivske   85.5   1 well ready for production / 10 drilled in past all showing high gas shows / 3 wells tested with rates > 1000 mcf/day.   300-400 M. Wells cost $350 K.   1P – 8.61
2P – 4.82
3P – 59.7

TOTAL = 73.1
  Very shallow and ready to be tied in. Structure has been well drilled. Need some delineation drilling to convert 3P to 2P.
Korolivske   40   1 well drilled ready for production / Tested > 4000 mcf/day. High CO2 and N2 content.   750-1000 M   1P – 3.87
2P – 1.97
3P – 64.97

TOTAL = 70.91
  2 structures identified with one structure confirmed with gas. Need additional wells to convert 3P to 2P reserves.
Uzhgorod   205   No wells drilled only seismic run showing several structures to have potential for gas. Several structures the size of RussoK field may be present.   Unknown at this point however believe same shallow zone as others is present.   N/A   This field is still in exploration. Requires drilling to confirm the potential in the identified structures
*** As per Engineering Report completed by Miller Lents in 2006.

For detailed technical information on Tysagaz and the related assets described above please visit the Corporation's website under the Projects Heading.

Financial Resources

3P currently has over $17m of cash on hand plus commitments for the early exercise of $0.70 warrants by a number of its large shareholders. Taking the cash on hand and early exercise into account the corporation is well funded to execute the contemplated acquisition of Tysagaz and the related capital commitments as well as advance its current CBM property in the Donezk Basin. David Kahn said, "it is nice to have shareholders of influence who are committed to the success and vision of building a world class E&P Company within the Ukraine. This support and commitment allows the team to focus all of our time and efforts on the assets". 

Sproule International Limited Engaged to Perform Reserves Diligence 

3P is also pleased to announce that the Corporation has engaged Sproule Associates Limited to perform technical diligence on the assets of Tysagaz. Mr. Alec Kovaltchouk is an Associate of Sproule and is Manager Geoscience. He has experience in Ukraine, Canada, the Czech Republic, Indonesia, Kazakhstan, Mexico, Poland, Romania, and Russia (Dagestan, Siberia,Volga-Ural Region). Alec is fluent in English, Polish, Russian and Ukrainian and graduated from the University of Lviv, in 1981 with a Masters of Science in Geochemistry. Alec is a noted expert in Coal Bed Methane and international field evaluation and has authored numerous studies on specialized areas of geology relevant to Ukrainian basins.

About 3P International Energy Corp.

3P International Energy is a Canadian-based emerging oil and gas company focused on developing significant proven oil and gas reserves in Eastern Europe. In the Ukraine, 3P is a joint venture partner on a significant CBM property (512 km2). The Company's strategy is to use proven technology, capital and expertise to significantly increase production and reserves via the drill bit and consolidation. 3P shares are traded on the TSX Venture Exchange under the stock symbol DOH.

Forward-Looking Information

This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. All statements that address future activities, events or developments that the Corporation believes, expects or anticipates will or may occur are forward-looking information. Forward-looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Corporation's control. There can be no assurance that outcomes anticipated in the forward-looking information will occur and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Corporation undertakes no obligations to update publicly or otherwise revise any forward-looking information, except as may be required by law. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Corporation's filings with the Canadian securities regulators available on

Contact Information: Adam Chambers
Investor Relations
(416) 907-9422