Protec Inks Agreement for Ukrainian O&G Projects
Protec Industries Inc. has successfully negotiated and signed a Letter Agreement with a Swiss company to acquire certain interests in Ukraine oil and gas projects. In a subsequent Joint-Venture Agreement with EEU Ltd., a Ukrainian company, Protec will pay 100% of costs in the Moshkarev Field to earn 75% of EEU's Net Revenue Interest.
In addition, Protec will acquire 51% of the Swiss company's legal rights and interest in the Ukrainian company, KrymTexasNafta Ltd. which is currently producing oil from the Aktash field in Crimea, Ukraine.
Subject to approval by the relevant governing bodies in the USA, Cyprus and Ukraine, payment for these acquired oil and gas interests is 25 million shares of Protec common stock.
The Moshkarev Field has at least two separate and offsetting oil-producing zones that will be developed independently. A separate gas-bearing zone has been identified in previous exploration. It is very likely that with modern technology and current gas prices this zone will also be productive. This represents the potential of more than 5 million barrels of oil equivalent ("BOE") net recoverable to the Company.
The Aktash field, after remediation of producing oil wells and the completion of field development represents additional recoverable reserves, net to Protec of more than 350,000 BOE.
"Today," said Arne Przybilla, President, Protec Industries, "Protec has taken definitive steps to acquire rights to an interest in oil and gas projects that are currently in production but in need of additional capital to fully develop their proven and probable reserves. The annual cash flow net to Protec is forecasted to exceed $10 million within the next two years."
Protec is in an advanced stage of negotiations with more than one investor group to provide the necessary financing for these acquisitions.
According to the President, these oil and gas acquisitions in Ukraine are just the beginning of the Company's participation in oil and gas-producing ventures. Protec is currently conducting property evaluations in Ukraine, Texas and other areas during its negotiations with financial partners. Strategically, the Company plans to acquire projects that offer near-term cash-flow from producing properties and high-risk, high-payout exploration properties with more long-term income objectives.
Finally, with Protec's strategic focus on oil and gas ventures, The Company announces that it has terminated all interests and obligations involving the geothermal project in Germany.
A Finder's Fee bonus is scheduled for payment to a 3rd party for introducing Protec to these oil and gas opportunities.