TORONTO, ONTARIO — (Marketwire) — 01/12/12 — A correction from source is being issued for the press release that was disseminated at 07:20 ET on January 12, 2012 due to an error in the first paragraph of the press release. 3P International Energy Corp. (“3P”, or the “Company”) (TSX VENTURE: DOH), an international upstream oil and gas company, is pleased to refer to the news release of Kulczyk Oil Ventures Inc. (“Kulczyk”) dated January 12, 2012 (the “Kulczyk Release”), reporting that the Olgovskoye-12 well (the “O-12 well”) in Ukraine was tied-in for commercial production on January 1, 2012 and is currently producing natural gas at a rate of more than 4.6 million cubic feet per day (“MMcf/d”).
TSX-V: “DOH”
PRODUCTION FOR KUB-GAS LLC REPORTED TO INCREASE TO 17 MMcf/d
TORONTO, ONTARIO – January 12, 2012 – 3P International Energy Corp. (“3P”, or the “Company”) (TSX Venture Exchange: DOH), an international upstream oil and gas company, is pleased to refer to the news release of Kulczyk Oil Ventures Inc. (“Kulczyk”) dated January 12, 2012 (the “Kulczyk Release”), reporting that the Olgovskoye-12 well (the “O-12 well”) in Ukraine was tied-in for commercial production on January 1, 2012 and is currently producing natural gas at a rate of more than 4.6 million cubic feet per day (“MMcf/d”). The O-12 well is operated by KUB-Gas LLC (“KUB-Gas”), a partially-owned subsidiary of Kulczyk. As announced in 3P–s news release of November 3, 2011, 3P has entered into a letter of intent to acquire KUB-Gas– 30% owner, Gastek LLC (“Gastek”) (the “Gastek Acquisition”). 3P expects to complete the Gastek Acquisition in the first half of 2012, subject to shareholder and regulatory approval (including approval of the TSX Venture Exchange), and to entering into a definitive agreement with Gastek and the current owners of Gastek. Upon completion of the Gastek Acquisition, 3P will be the beneficial holder of Gastek–s effective 30% interest in KUB-Gas.
According to the Kulczyk Release, total KUB-Gas production from its Ukraine properties has averaged approximately 16.5 MMcf/d since January 1, 2012 and more than 17 MMcf/d since January 4, 2012, while condensate production since the start of 2012 has averaged more than 200 barrels per day (“bbls/d”).
According to the production increase reported by Kulczyk, Gastek–s 30% working interest in the net production in KUB-Gas is currently 5.1 MMcf/d and 60 Bbls/d in condensate, or 910 Barrels of oil equivalent per day (“Boepd”). At present, 3P is producing 71 Boepd from its assets in Western Ukraine. Based on the data reported in the Kulczyk Release, pro forma net daily production of a combined Gastek and 3P would be 981 Boepd.
Olgovskoye-12
The Kulczyk Release reported the following with respect to KUB-Gas:
“The O-12 well reached a total depth (“TD”) of 2,700 metres in early September 2011 and was cased to TD as a potential gas producer. A 10 metre zone in the Middle Bashkirian was perforated and production tested at a maximum rate of 8.1 MMcf/d on a 10 millimetre choke as disclosed in a news release dated October 4, 2011. KUB-Gas plans to produce the well at a restricted initial rate as good production practice dictates that wells should be produced at lower than their maximum potential rates to avoid damage to the reservoir.
Average gross production during the month of December 2011 from the KUB-Gas properties was 12.1 MMcf/d of natural gas…and 130 barrels per day of condensate. Since the start of the year production from the KUB-Gas properties has increased by 40%. The tie-in during the first quarter of 2012 of the 0-6 and 0-8 wells, which were fracture stimulated in the fourth quarter of 2011, will further increase the production capability of the KUB-Gas licenses.”
About 3P International Energy Corp.
3P International Energy Corp. is a Canadian-based company focused on the exploration and development of oil and gas reserves in Eastern Europe. In the Transcarpathian basin of Ukraine, 3P is the 100% owner and operator of a 20-year production licence with a gas producing asset, as well as three exploration licences with exploration targets and a further development opportunity on a total of 300 square kilometres. The Corporation–s strategy is to use proven technology, capital, and expertise to grow the reserves base and build a portfolio of low cost gas production assets in Eastern Europe to capitalize on high regional gas prices. 3P shares are traded on the TSX Venture Exchange under the stock symbol DOH.
Reader Advisory
Information contained herein related to the licenses of KUB-Gas is taken from the press release of Kulczyk–s dated January 12, 2012, and such information has not been independently verified by 3P, and 3P makes no representation or warranty with respect to the accuracy of such information.
Completion of the Gastek Acquisition is subject to a number of conditions, including but not limited to TSX-V acceptance and shareholder approval. The Gastek Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Gastek Acquisition will be completed as proposed or at all.
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to, the entering into of the Gastek Acquisition and statements with respect to future activities of KUB-Gas and related to its five license areas in Ukraine and to certain wells drilled or seismic activities undertaken within those license areas that either are not or may not be historical facts. All forward-looking information concerning the licenses of KUB-Gas has been taken from the Kulczyk Release and there can be no assurance that the expectations reflected therein will prove to be correct. 3P believes that the expectations reflected in the forward-looking information concerning the Gastek Acquisition are reasonable, however there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in the Ukraine and globally; industry conditions, including fluctuations in the prices of natural gas; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
3P International Energy Corp.
Mas Kobuchi
(604) 618-1768