Indusmin Acquires Exploration Rights to Block 1 and 2 In Armenia
May 25, 2004
VANCOUVER, British Colombia–(BUSINESS WIRE)–May 25, 2004–Indusmin
Energy Corp. (TSX VENTURE:IDM) (Berlin Wkn:469065) is pleased to
announce that the company has acquired exclusive exploratory rights
on the Blocks 1 and 2 in the Republic of Armenia from the Armenian
American Exploration Inc. (‘AAEC’), of Solana Beach, California, for
a non disclosed override over twenty years term on any oil or gas
discovery made. Indusmin recently applied to the Armenian Ministry
of Energy for a five year extension to the license.
AAEC, a private company, was solely owned by Allen Paulson from
California, now deceased (July 2000); it is now owned by his son,
Michael Paulson. AAEC originally commenced operations in the spring
of 1997, acquiring 200 kilometres of seismic data during 1997-8 and
drilling one well, Azat-1, to 3,524 meters by July 1998. Oil traces
were encountered at about 3,212-5 meters. Allen Paulson was previously
Chairman Emeritus of Gulfstream Aerospace, a successful business man
in California and owner of world famous horse “CIGAR” .
Block 2, which covers the south western part of Armenia, including most
of the Armavir, Aragatsotn, Ararat and Kotaik regions, as well as the
capital city of Yerevan, contains the most prospective areas for both
oil and gas in the country. To the south west of the city of Armavir,
thirty kilometres due west of Yerevan, is an area where a number of
gas prospects occur. Two wells, Oktemberyan-13E and Oktemberyan-7P,
drilled in the 1960’s, tested gas at rates of 19,000 m3/day and
900m3/day respectively; many other boreholes have gas and oil shows.
“The agreement originally signed between AAEC and the Armenian
Ministry of Energy is a Production Sharing Agreement with advantageous
terms. Because of AAEC’s high start up costs, much of which are
eligible for cost recovery, Indusmin will be entitled to 80-85% of the
output of any initial discovery, dependent upon reserve size. Several
prospects with reserve sizes ranging between 15 and 40 bcf, supported
by both seismic and surface geochemical data, have already been
identified in the Armavir area, west of Yerevan. To the east, two oil
prospects — Shorakhpur and Nubarashen — have recoverable reserves
of about twenty million barrels each,” Tim Papworth, advisor to AAEC,
previously General Manager.
Further to the news releases of January 13 and 20, 2004, the Company
announces that it has closed its private placement of 1,183,463
units at a price of $0.19 per unit. Each unit consists of one common
share and one non-transferable share purchase warrant, each warrant
entitling the holder to purchase an additional common share for a
period of two years at a price of $0.25 per share.
The Company paid finders’ fees to David McNamara of 37,500 common
shares and Peter Sugden of 6,250 common shares, at a deemed price of
$0.19 per share in accordance with the policies of the TSX Venture
The shares, shares issued on the exercise of any warrants and shares
issued to the finders are subject to hold periods that will expire
on August 3, 2004.
Further to the news release of February 29, 2004, the Company announces
that it has closed a private placement of 1,719,000 units at $0.30 per
unit. Each unit consists of one common share and one non-transferable
share purchase warrant entitling the holder thereof to purchase an
additional common share of the Company at a price of $0.30 per share
in the first year of the term of the warrant and at a price of $0.40
per share in the second year of the term of the warrant.
Union Securities Ltd. acted as agent on a portion of the placement
and received $20,160 as broker fee, $5,000 and 10,000 common shares of
the Company at a deemed price of $0.30 per share as a processing fee
and a share purchase warrant entitling it to purchase up to 100,800
common shares of the Company at a price of $0.30 per share in the
first year and $0.40 per share in the second year.
–30–MRO/se* CONTACT: Indusmin Energy Corp. Carlos Munoz, 604-960
9930 Fax: 604-608-4733 or
The Company also issued 38,500 common shares to Canaccord Capital
Corporation, 16,000 common shares to Derek Ivany and 33,000 common
shares to David McNamara, all at a deemed price of $0.30 per share,
in payment of finders’ fees.
All securities issued under this placement are subject to hold periods
expiring on August 28, 2004.
The Company has also closed its shares for debt transaction announced
on January 13, 2004. A total of 1,094,735 common shares of the Company
were issued to creditors, at a deemed price of $0.19 per share,
for settlement of $208,000 in debt. The share issued under the debt
settlement are subject to hold periods expiring on August 6, 2004.