Strat Petroleum Forms 50/50 Joint Venture for Acquisition of Oil Sludge Reservoirs in the Republic of Bashkorstan
Apr 24, 2006 -- Strat Petroleum, Ltd. (Other OTC:SPRL.PK - News), an emerging exploration and development company focusing on oil and gas properties in the Russian Federation, today announced it has formed a joint venture with a Russian Company that has registered a Limited Liability Company in the Republic of Bashkorstan with the purpose of acquiring reservoirs of oil sludge which will be reprocessed into finished products such diesel fuel, gasoline and other by products. The joint venture entity called "Strat Nafta Ufa" (SNU), has acquired two reservoirs totaling approximately 300,000 metric tons, which has high crude oil content an official market value of approximately $80 per metric ton or close to $24 million in total value. SNU is in discussions with the various local refineries and an Agency of the Ministry of Environment to acquire a further 1.2 million metric tons of reservoirs.
ADVERTISEMENT click here The Republic of Bashkorstan is located in the Southern part of the Urals along the line of Europe and Asia. Its area is 143,600 km2. The capital is Ufa. The Republic of Bashkorstan is a sovereign state under the jurisdiction of the Russian Federation.
Bashkorstan annually produces around 130 million barrels of oil and possesses about 10 percent of Russia's refinery capacity. Russia started refining crude oil in Bashkorstan in the Ufa region initially. The Region has three major oil refineries and several chemical plants that generate oil sludge of approximately 10% of the annual amount of oil processed.
While major investment is being made by Russian refineries in equipment to improve the efficiency of their refineries, the sludge reservoirs remain undisturbed and are constantly being added to. Even with capital investment being made to upgrade the equipment in the antiquated refineries, efficiency may improve to 75%-80% recovery at best. This still leaves about 20%-25% unprocessed product that will again be disposed in oil sludge reservoirs as the refineries focus on refining crude oil which is their main line of business rather than on further refining sludge reservoirs.
Current more advanced technology allows the 10% of unrefined crude oil sludge to be further refined to 98%-99% efficiency resulting in optimum recovery of oil or refined oil products. With rising oil prices it has become lucrative to recover previously unrefined crude oil that has been accumulated in sludge reservoirs. Furthermore, with environmental remediation concerns, further refining of oil sludge reservoirs becomes evidence of good corporate citizenship with the recovery of oil products found in the oil sludge reservoirs being a good financial byproduct.
The Company wishes to thank its shareholders for their loyalty and continued support despite no news releases being made for the past several months, said H. Sam Hyams, President and CEO of Strat Petroleum. Management has been diligently pursuing opportunities that would result in revenues and cash flows in the shortest possible time, and the processing of the oil reservoirs is expected to accomplish this objective.
Posts: 726 | From: Delta Quadrant, Borg Cube 01 | Registered: Dec 2005
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How can you say this is the next NDOL when you were just in the NDOL thread the other day saying we need to switch to SPRL? NDOL buyout hasn't even happened yet.
-------------------- May your trading build your character as well as your portfolio. Posts: 1763 | Registered: Jan 2005
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Apr 27, 2006 -- Strat Petroleum, Ltd. (Other OTC:SPRL.PK - News), an emerging exploration and development company focusing on oil and gas properties in the Russian Federation, today announced that its joint venture entity in the Republic of Bashkorstan, Strat Nafta Ufa (SNU), has acquired three additional reservoirs totaling approximately 450,000 metric tons. Based on the official market value of approximately $80 per metric ton the value of the reserves acquired are approximately $36 million. SNU's total reserves now amount to approximately 750,000 metric tons, with an approximate value of $60 million. SNU continues its discussions with the various local refineries and an Agency of the Ministry of Environment to acquire an additional 1 to 2 million metric tons of reservoirs.
ADVERTISEMENT Along with the acquisitions, SNU has received the required Government approvals to construct its processing plants at the locations of the sludge reservoirs.
Samples from the reservoirs were tested by the Regional "Engineering and Innovation Association" Ecological Programs of the Republic of Bashkorstan in a report dated April 12, 2006, indicating that older reservoirs of sludge should result in 50% net processed product consisting of heating oil (50%), diesel fuel (20%), gasoline (20%) and bitumen (10%), based on certain available technology. In the future, with the purchase of fresh sludge, the raw material should produce 95% or greater net processed end product with similar breakdown. Based on current market prices in the Russian Federation, the total reserves acquired have the potential to generate over $125 million over the next three to five years.
The Republic of Bashkorstan is located in the Southern part of the Urals along the line of Europe and Asia. Its area is 143,600 square km. The capital is Ufa. The Republic of Bashkorstan is a sovereign state under the jurisdiction of the Russian Federation.
Bashkorstan annually produces around 130 million barrels of oil and possesses about 10 percent of Russia's refinery capacity. Russia started refining crude oil in Bashkorstan in the Ufa region initially. The Region has three major oil refineries and several chemical plants that generate oil sludge of approximately 10% of the annual amount of oil processed.
While major investment is being made by Russian refineries in equipment to improve the efficiency of their refineries, the sludge reservoirs remain undisturbed and are constantly being added to. Even with capital investment being made to upgrade the equipment in the antiquated refineries, efficiency may improve to 75% - 80% recovery at best. This still leaves about 20% - 25% unprocessed product that will again be disposed in oil sludge reservoirs as the refineries focus on refining crude oil which is their main line of business rather than on further refining sludge reservoirs.
Current more advanced technology allows the unrefined crude oil sludge to be further refined to 98% - 99% efficiency resulting in optimum recovery of oil or refined oil products. With rising oil prices it has become lucrative to recover previously unrefined crude oil that has been accumulated in sludge reservoirs. Furthermore, with environmental remediation concerns, further refining of oil sludge reservoirs becomes evidence of good corporate citizenship with the recovery of oil products found in the oil sludge reservoirs being a good financial byproduct.
The joint venture continues negotiations with several entities to establish a new joint venture for investment in processing equipment and should complete the agreements and financing within several weeks.
Management has been cautious in ensuring that the viability and probability of success of each project it has pursued is realizable, and for this reason after completing due diligence on projects it announced in the past found a number of undisclosed liabilities and other risks that it would not have been prudent to make the necessary investment.
About Strat Petroleum:
Strat Petroleum is an emerging exploration and development company focusing on investment in oil and gas properties and other related projects in the Russian Federation. For more information, please visit the company website at www.stratpetroleum.com. The company's new phone numbers are: 905-761-9169 (main), 416-628-8018 (fax) and 646-216-9751 (U.S.).
Posts: 726 | From: Delta Quadrant, Borg Cube 01 | Registered: Dec 2005
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will be interesting to see what happens with this one my screen does not show L2's anyone got when the bell rings....thanks
Posts: 35 | From: Canada | Registered: Mar 2006
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Is anyone keeping their eyes on this one? This looks like a company which could become very profitable very soon. Any other ideas?
Posts: 156 | Registered: Dec 2005
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