Hong Kong, May 9, 2007 - Oil and gas company Genesis Energy Holdings Limited (HKEx: 702) today announced further progress of the non-legally binding letter of intent ("Letter of Intent") which it entered on March 30, 2007 with the state-owned National Oil Company of Liberia ("NOCAL") for possible investment ("Possible Investment") in oil and gas prospects in Liberia. A delegation from Liberia led by Dr Fodee Kromah, President and CEO of NOCAL, today hosted a presentation of the oil and gas prospects in the country.
Genesis Energy will commence an overall review of the nine vacant offshore and two vacant onshore blocks under NOCAL's management. Upon completion of the overall review, the Company will select one to two blocks for a detailed geological/geophysical review after which it will apply through NOCAL for an official approval from the Government of Liberia for audit clearance. The overall review is expected to commence in June.
The Letter of Intent establishes a platform for mutual cooperation between the Company and NOCAL in future. Under the Letter of Intent, the Company will appoint independent professional firms to conduct a preliminary geological/geophysical due diligence and legal due diligence on the selected vacant prospects. Subject to the satisfactory results of the due diligence and taking into account of the technical advice and the costs required for drilling, the parties to the Letter of Intent will proceed to the negotiation for terms and conditions of a formal agreement in respect of the Possible Investment.
Genesis Energy has been in discussion with a few Major China state-owned enterprises in oil and gas industry for possible cooperation in the Liberian project.
The aggregate consideration, timing and method of payment and other detailed terms and conditions in respect of the Possible Investment will be subject to the satisfactory results of the due diligence and taking into account of the technical advice regarding the Possible Investment and the costs required for drilling and will be determined and negotiated on an arm's length basis.
Mr Terence Kong, Executive Director, Genesis Energy said: "We have been looking for further investment opportunities in the energy sector to broaden the Group's business and maximise the return of our shareholders. Subject to due diligence to be conducted, it is expected the Possible Investment will be a good business opportunity for the Group in the future."
The Group has established a technical advisory committee comprising members of world renowned experts in oil and geology. The committee will work with the Group's management to drive further development in its upstream oil and gas operations.
About Genesis Energy Issued by : Through :
Genesis Energy Holdings Limited (702) is an energy company with focus on oil and gas exploitation and operations. The company is currently finalizing a number of investments in existing oil and gas fields and greenfield projects in the United States, China and Liberia. Downstream, the company is engaged in crude oil transportation and pipelined gas businesses.
Genesis Energy Holdings Limited
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