Onshore China Oil Agreement Signed by Pacific Asia Petroleum, Inc
Exhibit
99.1
Onshore
China Oil Agreement Signed by Pacific Asia Petroleum, Inc
FOR
RELEASE: TUESDAY, SEPTEMBER 30, 2008; 9:00AM Eastern
Time
Hartsdale,
New York, September 30, Pacific Asia Petroleum, Inc. (PFAP.OB), a
U.S. publicly traded company
announced today that it has entered into an
Agreement on Cooperation with
Well Lead Group Limited relating to the possible acquisition of a
participating interest in two onshore producing areas in the People’s Republic
of China.
Pursuant
to the Agreement on Cooperation, Pacific Asia Petroleum, Inc (“Pacific Asia”)
and Well Lead Group Limited (“Well Lead”) agree to use commercially reasonable
efforts to finalize and enter into a final Sale and Purchase Agreement (before
the end of November, 2008) with respect to the purchase by Pacific Asia of up to
a 39% interest (“Interest”) held by Well Lead in Northeast Oil (China)
Development Ltd.’s 95% interest in the currently producing oilfield blocks Fu710
and Meilisi723 located in the Fulaerjiqu Oilfield in Qiqihar City, the
Heilongjiang Province in the People’s Republic of China.
Commenting
on the Agreement, Xxxxx X. Xxxxxxxxxx, President & CEO of Pacific Asia said:
“We are excited about this opportunity to implement Pacific Asia’s plans to
expand on our onshore oil production opportunities in China. The current
partners have drilled over 20 xxxxx in the fields with steadily increasing
production. We believe that our Pacific Asia operational team will complement
our partners by bringing their experiences and technical recommendations on how
to maximize economic production. While we still need to complete our due
diligence, we believe that this opportunity has the potential to jump-start our
strategy of adding currently producing fields to our portfolio.”
According
to current plans, the parties intend to continue to drill production xxxxx over
the next few years in order to maximize commercial production from the blocks.
The two blocks have a total area of approximately 34 square kilometers. The
estimated oil reserves in the field have been certified by the Chinese
government; production licenses have been issued and an independent report has
been publicly published with a present value of approximately US $230 million
for the 51% owner. The oil sharing contract covering these areas has a term that
expires in May 2027.
About Pacific Asia
Petroleum, Inc.
Pacific
Asia Petroleum, Inc. is engaged in the business of oil and gas exploration,
development, production and trading in Asia and the Pacific Rim countries, with
a specific focus on developing a broad range of energy opportunities, including
clean and environmentally-friendly natural gas ventures, in
China. The company’s executive offices are located in Hartsdale, New
York, and the company also has offices located in Beijing, China and
California.
Media
Contact:
Pacific
Asia Petroleum, Inc.
Xxxxxx
Xxxx
xxxxxxxxxx@xxxxxxxxxxx.xxx
000 Xxxx
Xxxxxxxxx Xxx.
Hartsdale,
NY 10530
(000)
000-0000
xxx.xxxxxxxxxxx.xxx
Investor Relations
Contact:
Liviakis
Financial Communications, Inc
Xxxx
Xxxxxxxx
(000)
000-0000
Xxxx@Xxxxxxxx.xxx
xxx.xxxxxxxx.xxx
000
Xxxxxxx Xxx, Xxxxx 000
Mill
Valley, CA 94941
Statements
contained in this press release that state the intentions, hopes, beliefs,
anticipations, expectations or predictions of the future of Pacific Asia
Petroleum, Inc. and its management are forward-looking statements. It is
important to note that any such forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties. Actual
results could differ materially from those projected in such forward-looking
statements. Factors that could cause actual results to differ materially from
those projected in such forward-looking statements include: the preliminary
nature of well data, including permeability and gas content, and commercial
viability of the xxxxx; risk and uncertainties associated with exploration,
development and production of oil and gas; drilling and production risks; our
lack of operating history; limited and inadequate cash resources; expropriation
and other risks associated with foreign operations; anticipated pipeline
construction and transportation of gas; matters affecting the oil and gas
industry generally; lack of availability of oil and gas field goods and
services; environmental risks; changes in laws or regulations affecting our
operations, as well as other risks described in our filings with the Securities
and Exchange Commission.
