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Dover Petroleum Announces the Completion of a Farm-Out Deal for the East Wadi Araba Concession, Gulf of Suez -- Egypt to Drill Two Exploration Wells Market Wire - May 9, 2006 9:08 AM (EDT)
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TORONTO -- (MARKET WIRE) -- May 09, 2006 -- Dover Petroleum Corp. (OTC: DVPC) is pleased to announce the receipt of funds for completion of a signed Farm-Out Agreement between DOVER INVESTMENTS LIMITED ("Dover"), TRANSPACIFIC PETROLEUM CORP ("TransPacific"), DR. GHAREEB AWAD ("Awad"), MOGUL ENERGY INTERNATIONAL, INC. ("Mogul") and SEA DRAGON ENERGY INC. ("Sea Dragon").
TransPacific, Mogul, and Sea Dragon will attain an 85% interest in the Concession, subject to the Egyptian Government's approval by expending a minimum of US$4,000,000 to drill 2 wells in the EWA Concession. The first well, EWA-4X, is to be completed to the approval of the EGPC within 2 months of Dover submitting for a deed of assignment to Mogul, TransPacific and Sea Dragon, subject to rig availability. The second well is to be completed to the approval of the EGPC before July 17th, 2007. The US$2,000,000 required for the first well is already on deposit with an escrow agent to pay for the drilling costs of EWA-4X.
Upon approval from the EGPC, final interests shall be TransPacific 25%, Mogul 20%, Sea Dragon 40%, Dover Petroleum Corp 11%, Robert Salna 3% and Brockton International 1%.
The Agreement calls for the remaining 15% interest of the last 3 parties mentioned to be a carried working interest right through to commercial production. The costs of this Carry shall be borne by the parties obtaining the 85% interest.
Sea Dragon President David Thompson said, "This farm-in creates an exceptional opportunity for us as we seek to grow our company and create maximum value for our shareholders. We look forward to developing additional assets in Egypt."
Naeem Tyab, President of Mogul, states that, "Mogul is looking forward to working with its new partners on this exciting project."
The statements contained in this press release which are not historical fact are forward-looking statements that involve certain risks and uncertainties including, but not limited to, decreases in prices for natural gas and crude oil, unexpected decreases in gas and oil production, the timeliness, costs and success of development activities, unanticipated delays and costs resulting from regulatory compliance, and other risk factors described from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. No assurances can be given that these statements will prove to be accurate. A number of risks and uncertainties could cause actual results to differ materially from these statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to confirm these statements to actual results.
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