Amity Oil Increases Turkish Gas Production

Amity Oil's gas production from its cornerstone Gocerler Gas Facility in Turkey's Thrace Basin achieved a record high of 14.4 million cubic feet per day (mmcf/d), bringing the average up to 11.1 mmcf/d for the first five days of November.

Chairman Richard Elliott said the Company was on track to complete a plant upgrade at Gocerler that would increase gas production capacity to 20mmcf/d. "We are budgeting to produce at a rate of 18mmcf/d from January 1st and these figures assume no reserves upgrade." Mr. Elliott said Amity planned to drill a total of eleven wells within twelve months and that seismic had indicated that the chances of adding additional commercial reserves from this program were exceptional.

Amity is now in a sufficient cash flow and reserves position to deliver this exploration and development program. At 10 mmcf/d Amity's EBITDA (earnings before income tax depreciation and amortization) is over $8 million on an annualized basis before any exploration write-offs. The company expects to spud the Gocerler-4 well during December. "We have several leads along the Gocerler trend and fully expect some of those to develop into exciting prospects. The "boundary" lead alone, if it develops into a prospect, could contain reserves of the size of Gocerler," he said.

In reviewing the results of the recent election in Turkey, Mr. Elliott said that Amity welcomed the stability that will result from a single party Government. Amity views this as a positive outcome. "I am confident that our experience and relationships in Turkey will deliver big rewards to shareholders," he said.


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