Angus Energy Receives Financing for Barnett Shale Project

Angus Energy has signed a Letter of Intent with the Russian joint stock company, Kogalimneftegas, a subsidiary of LUKOIL to provide $15 million in additional financing for the development of Angus Energy's Barnett Shale assets.

The Agreement acknowledges Kogalimneftegas' interest in Angus Energy's Barnett Shale properties and in pursuing financing opportunities available through the company. The proceeds from the $15 million financing will be used by Angus for the development of their Barnett Shale properties and general and administrative expenses.

"This alliance with LUKOIL, will bring the company's financial resources to $30 million, giving Angus an even stronger acquisition and exploration capability in an extremely attractive and expanding natural gas play," said Brent Nelson, Director of Angus Energy Corp. "Angus is currently positioned as a major stakeholder in the Barnett Shale and with this partnership we can further take advantage of opportunities for expansion."

"Developing the gas sector has become a crucial part of LUKOIL's growth strategy," said LUKOIL Vice President Vladimir Nekrasov. "Our company has defined a plan for financing and developing natural gas facilities through 2005 and this partnership with Angus fits perfectly into this plan."