Aurado Exploration Ltd. has given notice that the Acquisition Agreement between the Company and Oil Capital Ltd. regarding the acquisition of the rights to Block III in the Republic of Turkmenistan has terminated upon expiry, effective April 1, 2003, of the obligations of OCL to use its best efforts to secure a Production Sharing Agreement covering Block III with the Ministry of Oil and gas of Turkmenistan. In the event the government-approved PSA was issued prior to April 1, 2003, OCL was to have received 400 million Aurado common shares and US$1,000,000 (of which US$600,000 was paid as a deposit). However, the Production Sharing Agreement has not been secured and the Acquisition Agreement has been terminated. Aurado is seeking repayment of the US$600,000 deposit.
Aurado is continuing to pursue potential projects in Kazakhstan as well as Turkmenistan, as part of its core strategy to acquire and develop petroleum interests in the Caspian Sea region. This is in addition to the ongoing development of the Liman Block in western Kazakhstan where the Company recently completed the successful drilling and testing of its first well on the Block.