TORONTO, Dec. 13, 2005 (PRIMEZONE) -- Biogenerics Limited (Pink Sheets:BIGN) announced today a more detailed summary of the current business plus oil and gas leasehold interest base of Tyche Energy, Inc., a subsidiary division the Company recently announced plans to spin-off, resulting in up to 10% of Tyche Energy's shares being gifted on a pro rata basis to Biogenerics shareholders.
In a special directors meeting held last Friday, Biogenerics' board unanimously passed a resolution to gift up to 10% of the outstanding common shares of Tyche Energy to Biogenerics shareholders of record as of the close of business, December 20, 2005.
Biogenerics currently holds an ownership stake of 37.5% in the London, Ontario-based junior oil and gas exploration company, and Biogenerics management will continue to comprise a portion of Tyche Energy's board of directors. In an effort to better educate the marketplace on Tyche Energy's current business and petroleum leasehold interest base, Biogenerics management team is making available the following business summary of Tyche Energy and its management team.
About Tyche Energy, Inc.
Tyche Energy operates exploration projects through joint ventures in the Appalachian Basin and owns interests in a number of petroleum and natural gas leases in Elgin, Middlesex, Lambton, Kent, and Essex Counties, Ontario. In addition to its main operating focus, the Company is actively exploring projects in the Appalachian and Michigan Basins.
Tyche Energy's strategy is to grow through exploration and development of oil and gas reserves in its core area and through the acquisition of under exploited properties, reserves and companies that will complement its growth objectives. Tyche Energy's primary long-term goals are to develop a high-level of sustainable production which can be directly marketed to the expanding Eastern North American market and resulting in a high-degree of profitability and cash flow.
Development Projects
Substantially all of Tyche Energy's exploration, development and production activities are conducted jointly with JV oil and gas operators. The following summary provides information regarding the areas in which Tyche Energy operates pursuant to such agreements;
Sombra 7-6-VI Agreement: Tyche Energy holds a 38.48% working interest in 100 acres located in the West Becher prospect area of Sombra Township, Lambton County. The project is operated by Kinderhook Resources, Inc.
West Becher Agreement: Tyche Energy holds a 48.97% working interest in 1,117 acres of certain undeveloped lands in the West Becher prospect area in Sombra Township, Lambton County. The project is operated by Tyche Energy, Inc.
Romney Lake Erie Agreement: Tyche Energy holds a 0.195% gross overriding royalty interest in 1,550 acres located on Lake Erie in Romney Township, Kent County. The project is operated by Talisman Energy, Inc.
Mosa Joint Operating Agreement: Tyche Energy holds a 66.67% working interest in 2,230 acres of certain undeveloped lands located in Mosa Township, Middlesex County. The project is operated by Tyche Energy, Inc. The remaining working interest in the Mosa lands is held by Torque Energy Inc. (TSX).
Dunwich Joint Operating Agreement: Tyche Energy holds a 66.67% working interest in 5,960 acres of certain undeveloped lands located in Dunwich Township, Elgin County. The project is operated by Tyche Energy, Inc. The remaining working interest in the Mosa lands is held by Torque Energy (TSX).
Charring Cross Agreement: Tyche Energy holds a 100% working interest BPO and a 75% working interest APO in 178 acres on certain lands located in Harwich Township, Kent County. The project is operated by Tyche Energy, Inc. The remaining working interest in the Harwich lands is held by Wellhead Workers Inc.
Kent Lake Erie Agreement: Tyche Energy holds a 50.00% working interest in 5,900 acres of certain exploration licenses and leases located in the Romney Lake Erie and Clearville Lake Erie prospect areas in Romney and Orford Township, Kent County. The project is operated by Veteran Resources Inc.
Caribou Sikanni Agreement: Tyche Energy holds a 10.00% working interest in 2,560 acres of certain exploration licenses located in the Caribou Sikanni area of northeastern BC. The project is operated by Veteran Resources, Inc.
Management Team
Mr. Rowe, Chairman and Chief Executive Officer, is an experienced oil and gas executive with over 25 years of industry experience. He was a founder and President of E. P. Rowe Oil Limited, a private Ontario-based oil and gas company credited with discovering the Dover 7-5-V East Pool in 1983. From 1983 to 1986, Mr. Rowe served as Vice President of Exploration for Paladin Petroleum Corporation, a public Ontario oil and gas company. In 1986, E. P. Rowe Oil Limited merged with Paladin Petroleum Corporation to form PPC Oil & Gas Corp. ("PPC") and was listed on the TSE. Mr. Rowe served as President and CEO of PPC from 1987 to 1990. In 1991, PPC merged with Paragon Petroleum Corporation. Mr. Rowe served as Vice President of Eastern Operations for Paragon from 1991 to November 1994. Mr. Rowe is a former President of the Ontario Petroleum Institute (the "Institute") and is currently a Director and Chairman of the Forward Planning Committee of the Institute.
Jean Claude Bonhomme, Executive Vice President. Mr. Bonhomme is an experienced oil and gas executive having over 25 years' experience in the Ontario oil and gas industry. He was the founder and President of Tipperary Resources Ltd. an independent oil and gas producer and predecessor of Paladin Petroleum Corporation. Paladin Petroleum Corporation, which was formed in 1983, amalgamated with several public and private oil and gas companies to form PPC Oil & Gas Corporation. Mr. Bonhomme served as President of PPC until 1987. Mr. Bonhomme has been involved in numerous public companies since 1987 including Explorers Alliance Inc. and is currently President, Bonclau Holdings Inc.
Mr. Ian Colquhoun, PhD. Vice President of Exploration is an exploration Geologist with over 10 years of expertise in the Ontario oil and gas industry. Mr. Colquhoun received his BSc. and MSc. in geology from Brock University where he published theses on the Trenton Group carbonates of southwestern Ontario. Mr. Colquhoun is also the author of several confidential reports on the Alberta oil sands pursuant to agreements between AOSTRA, the University of Western Ontario, Imperial Resources Ltd. and Amoco Petroleum Ltd. He began his career in Ontario with Pembina Resources in 1995 and has been employed as a consultant by several large and intermediate exploration companies in Ontario, including Resource Professionals Inc., Icon Petroleum Inc., Daybreak Energy Corporation, Cobra Oil & Gas Corp., and Rowe Energy Corporation. Most recently Mr. Colquhoun served as Exploration Manager -- Ontario for Veteran Resources Inc. (Calgary Alberta). Mr. Colquhoun is a member of the Association of Professional Geoscientists of Ontario ("APGO"), the American Association of Petroleum Geologists, and the Ontario Petroleum Institute.
Management Objectives Going Forward
Tyche Energy has built a solid operating base with its producing properties in Kent and Lambton County. Cash flow from production when combined with other financing activities is expected to provide the capital to maximize Tyche Energy's un-developed land potential and to explore other high-return opportunities in Elgin, Middlesex, Lambton, Kent and Essex Counties.
Tyche Energy plans to participate in the drilling of up to 10 exploration and development wells in 2005 - 2006. Exploration targets will include both Silurian and Ordovician age reservoirs having the potential to add both oil and natural gas production and reserves. Tyche Energy also plans to expand its current lease inventory on exploration prospects within its core areas utilizing management's technical expertise and its significant inventory of geological and geophysical data. In addition, management plans to acquire additional seismic and geophysical exploration programs to support further exploration and development drilling targets.
Tyche Energy's management team has reviewed several acquisition opportunities and will continue to pursue both property and corporate acquisition opportunities to add reserves and shareholder value over the coming months.
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy, Hydroslotter Corporation and WW Energy Inc.
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. Information on the factors which could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.