DALLAS, Nov. 2, 2004 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that it has signed a Strategic Alliance agreement with PT Elnusa, an Indonesian oil and gas services provider, to cooperate in oil and gas exploration, development and production projects in Indonesia.
The first project, slated to be conducted under the Strategic Alliance, will be the long awaited development of Continental's Bangkudulis Oil Field. Elnusa is already active in providing drilling, production and seismic services in nearby fields in East Kalimantan in the vicinity of Continental's Bangkudulis Field.
Details are now being worked out by Continental and Elnusa on an arrangement by which Elnusa will 1) drill two new development wells, 2) re-complete an old, shut-in oil and gas production well, 3) install an early production system and 4) shoot a 3D seismic survey to delineate future development wells and thereby earn either an equity interest in the Bangkudulis Field, an entitlement to payment for the services provided, plus an uplift bonus, from oil production once it is established or some other compensation arrangement to be agreed. By accomplishing this work program, Elnusa will also earn a project management contract to provide integrated services for the development, operations and maintenance of the Bangkudulis Field over its entire productive life.
The Strategic Alliance is intended to encompass additional projects and together Continental and Elnusa geologists and engineers are already eyeing new Indonesian oil and gas acquisition opportunities. The nature and extent of the joint participation by Continental and Elnusa in individual projects shall be determined on a case by case basis.
Mr. Richard L. McAdoo, Chairman and President of Continental, said, "We are proud and honored to establish this relationship with Elnusa. Elnusa is a well established oilfield services provider with vast technical and operational resources including drilling rigs and oilfield equipment plus a well trained and experienced workforce. Elnusa brings a depth of field operational capability and financial resources to the table that we did not have before. We intend to make the most of this opportunity and look forward to a long and profitable Strategic Alliance with Elnusa. We are targeting commencement of drilling in January."
Mr. Rudy Radjab, President & CEO of Elnusa, said, "Indonesia is facing increased domestic oil and gas demand and Elnusa is seeking to meet this challenge by expanding our oilfield services business, upstream into oil production. We are delighted to set up this Strategic Alliance with Continental that has many years of upstream oil and gas experience in Indonesia and several projects on the table. I do hope that our alliance will ultimately come to incorporate many other working areas in Indonesia and overseas."
About Elnusa:
Established in 1984 as a subsidiary of Pertamina, the Indonesian state-owned oil company, Elnusa has grown into a highly respected and sought after supplier of a full range of oilfield services to the Indonesian oil industry including drilling and well work-over services, seismic data acquisition and oil and gas production services. Elnusa's network of branches enables it to provide services throughout Indonesia and some overseas locations including a recently signed contract to provide oilfield services in Iraq.
About Continental Energy Corporation:
Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com.
Safe Harbor Statement:
No securities regulatory authority has either approved or disapproved the contents of this news release.
Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the U.S. Securities Exchange Commission.