IPR Increases Presence in Egypt

Texas Independent, IPR, inked two new Production Sharing Agreements (PSA) with the Egyptian Government on August 8, 2005. The two Agreements signed by Egypt's Minister of Petroleum, His Excellency Sameh Fahmy, and IPR's President and CEO, Dr. M. K. Dabbous, marked IPR's seventh and eighth Concession Agreements in the Arab Republic of Egypt. Yidma-Alamein, a producing development lease in the Western Desert and the last Cost Sharing Agreement (CSA) in country, was converted to a PSA for the next 25 years. IPR will embark on an aggressive work program consisting of 3D seismic, drilling, and production enhancement activities to accelerate rates in all fields.

The North Ramadan concession, an exploration license in the Gulf of Suez, was awarded to IPR and its consortium partner OVL, a subsidiary of Indian giant ONGC, as a result of the EGPC 2004 Bid Round. The work program obligations include 3D seismic and five offshore wells in a 290 square kilometer block. IPR's investment portfolio in Egypt over the next three years exceeds $120 MM USD in operational and development activities in the Gulf of Suez and Western Desert. This commitment to continue expanding IPR's financial and technical resources is testimony to its corporate objectives as an oil and gas producer to work with the Government of Egypt in supplying the long-term natural resources the country will require.