Franklin in Negotiations to Sell Oil & Gas Holdings
Franklin Mining, Inc. Chairman and CEO, William A. Petty, announced that he has entered negotiations for the sale of the company's 51% ownership in each of two South American subsidiaries.
In making today's announcement, Mr. Petty stated, "My Board and I have determined that it is in the long-range best interest of our shareholders to sell our 51% interest in each of two subsidiary companies originally formed to hold and manage energy projects in Bolivia and Argentina. The sale of our energy assets will allow the company to focus its energy and talent on developing our Escala and Cerro Rico mining projects."
Several options for structuring the sale of Franklin Oil & Gas, Bolivia S.A. and Franklin Oil & Gas, Argentina S.A. are currently under review with a decision expected to be announced within thirty days. Each of the options under consideration will allow Franklin Mining, Inc. to recoup the direct investment made in developing South American energy projects and participate in their future success.
Franklin Oil & Gas, Bolivia S.A. has two Bolivian projects under Memorandum of Understanding from YPFB (Yacimientos Petroliferos Fiscales Bolivianos), Bolivia's national petroleum company. Each of these projects is designed to assist Bolivia in developing the exportation of its natural gas assets and develop additional industrialization projects utilizing other YPFB assets.
Franklin Oil & Gas, Bolivia S.A. is not restricted by recent developments in restructuring and reallocating Bolivia's hydrocarbon assets. Franklin's Memorandum of Understanding with YPFB precedes the May 1, 2006 nationalization of gas fields and has since been reconfirmed.
Franklin Oil & Gas, Argentina S.A. has an agreement in place for the construction and future operation of a gas-to-liquid (GTL) facility in the Tierra de Fuego Province of Argentina. Franklin Mining, Inc. CEO, William Petty, is currently negotiating long term contracts to assure additional quantities of natural gas resources.
- Franklin Sells Oil and Gas Division (Jan 22)
- Franklin, Epsur Ink LOI to Develop Oil Fields in Argentina (Aug 08)
- Franklin Mining to Provide Rigs with Cherokee and GTS (Jun 24)