NEW YORK, Oct. 13, 2014 /PRNewswire/ -- Millennium Energy
Corporation (OTC Pink: MENC) is pleased to announce the execution
of an agreement for the formation of a joint venture with Westoil
LLC, a Russian Corporation, on two Oil Exploration Blocks covering
465 sq Kilometers and 85 sq kilometers located in the Sakhalin
Region, Russian Federation:
The Vazinski License block's surface area
is equal to 465 square kilometers and is licensed by Ministry
of Natural Resources Russian Federation, Sakhalin Region, Nogliksk
District license number YUSKH - OII78 -NR granted on December 29, 2010 valid until January 1, 2036.
The territory of Vazinski licensed area is located at the
Nogliki District of Sakhalin Island, Federal Republic of
Russia; it is located 40 km to the
south - south-west of the regional center of the district of
Nogliki settlement. The site is located between two rivers called
the Vazi River and the Nabil River. The topography relief of the
area is mainly hilly and steeply sloping. The absolute levels range
between 20 meters and 120 meters. It has been reported that the
local government geological survey estimates of oil and gas for the
license region are between 7.5 and 8.370 million tons of oil and
gas equivalent. However the company will not adopt these estimates,
the entire area will have to be 3 d seismic mapped and several
wells will need to be drilled in order to accurately confirm
the size of the oil and gas reserves in the license area and this
process is anticipated to take two to three years to complete.
There can be no assurance of the results of the test wells until
the wells have been drilled and the data recording the actual
geological reserves recorded.
The Verhoturovski License block's surface area is equal to 85
square kilometers and is licensed by Ministry of Natural
Resources Russian Federation, Sakhalin Region, Nogliksk District,
license number YUSKH - OII79 -NR granted on December 2, 2010 valid until January 1, 2036.
The territory of Verhoturovski licensed area is located in the
Okha Administrative Region of Sakhalin Island, Federal Republic of
Russia. The site is located on the
coastal land of Piltun Bay in the Northern part. The relief is
hilly with an altitude in the northern part up to 50 meters and in
its western part between 25 and 60 meters, forest cover of the
territory is estimated at 80%. It has been reported that the local
government geological surveys have estimates of oil and gas for the
Southern region of the license area are estimated at up to 13
million tons of oil and gas equivalent and up to 428 million tons
of oil and gas equivalent in the Northern region of the license
area. However the company will not adopt these estimates, the
entire area will have to be 3 d seismic mapped and several wells
will need to be drilled in order to accurately confirm the size of
the oil and gas reserves in the license area and this process is
anticipated to take two to three years to complete. There can be no
assurance of the results of the test wells until the wells have
been drilled and the data recording the actual geological reserves
recorded.
There exists a well developed oil and gas infrastructure in
close vicinity to the license areas and a well developed network of
pipelines and gathering systems that are available to transport oil
and gas in the region that has seen large foreign investment by
consortiums of international oil companies led by Exxon &
Neftegaz in Sakhalin 1 project and by a Shell led consortium in
Sakhalin 2, together the energy companies have according to
numerous media reports invested over $20
billion dollars in the Sakhalin Island Natural gas projects
turning it into one of the largest Natural gas production regions
in the world.
Russian oil production, currently at 10.55 million
barrels per day is one of the world's largest, but Sanctions on
export of USA oil technology could
derail future foreign investment in Russia's oil industry. Russia is home to the largest combined oil and
gas reserves in the world.
Commercial Terms:
In consideration of the contribution of the two exploration
licenses to the Millennium Energy Corp/ Westoil LLC joint venture,
the company will issue to Westoil LLC, 50 million common shares @
$3.00 per share and will issue an
additional 50 million shares @$3.00 per shares in connection with
the financing of the joint venture.
Millennium has proposed to arrange a debt financing to finance
the works relating to the pre development including the completion
of the 3 d seismic mapping of the prospective areas and the
exploration and drilling of 5 oil wells in the two license areas in
Sakhalin Region of the Russian
Federation. The exploration budget will be mutually agreed
and prepared by the management of Westoil LLC and the Company.
The Company and Westoil LLC are working on formal agreements to
give effect to the transactions and anticipate completing these
operating and financing agreements within the last quarter of
2014.
Irving Aronson, the Chairman of
Millennium Energy Corp, said "We are very pleased to have secured
this opportunity for the company and are excited by the
immense potential of the Sakhalin region that is well known to
host one of the largest hydrocarbon formations in the world, this
transaction will undoubtedly greatly enhance the value of the
company for the benefit of all shareholders."
Safe Harbor
This release contains statements that constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements appear in a number of places
in this release and include all statements that are not statements
of historical fact regarding the intent, belief or current
expectations of Millennium Energy Corporation, its directors or its
officers with respect to, among other things: (i) financing plans;
(ii) trends affecting its financial condition or results of
operations; (iii) growth strategy and operating strategy. The words
"May," "would," "will," "expect," "estimate," "can," "believe,"
"potential" and similar expressions and variations thereof are
intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond Millennium Energy
Corporation's ability to control, and that actual results may
differ materially from those projected in the forward-looking
statements as a result of various factors. More information about
the potential factors that could affect the business and financial
results is and will be included in Millennium Energy Corporation's
filings with OTC Markets and/or the SEC.
Contact:
For further information please contact:
Millennium Energy Corporation
Public Relations and Shareholder Information
2nd Floor, New York
NY 10019
Or Tel Irving Aronson
Chief Executive Officer
London : 44 79783289
email Irvingaronson@gmail.com
www.millenniumenergycorp.com
SOURCE Millennium Energy Corporation