TORONTO, Feb. 27, 2006 (PRIMEZONE) -- Biogenerics Limited (the Company) (OTCBB:BIGN) announces that it has signed a Letter of Intent ("LOI") with Productive Geoscience ("PG") and Tyche Energy Inc. ("Tyche") whereby PG and Tyche will provide geological, geophysical and management expertise to explore and develop petroleum and natural gas projects in Canada and the United States.
The LOI pertains to Biogenerics projects in the states of Arizona, New Mexico, Louisiana, Texas, Arkansas, Oklahoma, Kansas, Colorado, Montana, Utah, California, and all existing and future Tyche projects in Canada for a period of between three (3) and ten (10) years.
Tyche will provide its geological and management expertise for all projects developed within the U.S. Tyche is a Canadian oil and gas exploration company whose senior management has an aggregate of over 75 years of exploration and management experience within the upstream North American oil and gas industry.
PG will provide Biogenerics and Tyche with exclusive use of its proprietary N2Vision technology to assist in exploring the hydrocarbon potential of oil and gas projects in Canada and the United States. The core of the N2Vision technology is a multilayer feed-forward neural network (MFFN) algorithm for pattern recognition. The algorithm is trained to directly recognize hydrocarbons by automatically establishing non-liner relationships between all attributes of the seismic field and data from existing wells. Since 1986, hundreds of exploration wells (mostly wildcats) drilled on locations evaluated with N2Vision technology, have established a predictive success ratio greater than 85%. N2Vision has been utilized for the exploration of key oil and gas fields owned by LUKOIL, YUKOS, SURGUTNEFTEGAS, and TATNEFT. Major customers of N2Vison include Tatneft (NYSE:TNT) and Surgutneftegas.
Pursuant to the terms of the LOI, Tyche and PG will earn sliding scale GORR of between three (3%) and five (5%) percent on all successful wells drilled on projects in the U.S. The LOI is the first step to entering into a formal agreement pursuant to which Biogenerics, Tyche, and PG will jointly explore and develop oil and gas projects in Canada and the U.S.
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.
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.
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.