EuroGas, Teton Petroleum extend merger talks

EuroGas Inc., London, and US-based Teton Petroleum Co. agreed to extend their merger discussions through Dec. 31, beyond the Nov. 1 deadline previously established in an August standstill agreement.

Nov 1st, 2000


EuroGas Inc., London, and US-based Teton Petroleum Co. agreed to extend their merger discussions through Dec. 31, beyond the Nov. 1 deadline previously established in an August standstill agreement.

EuroGas and Teton began merger discussions 15 months ago and in April announced a merger agreement. However, rising oil prices throughout the negotiation period required the two companies to rework the original deal's terms and structure several times.

"It is important that we let the shareholders know that these talks are still progressing, and that there is value in continuing the negotiations," said Karl Arleth, president and CEO of EuroGas. "However, we cannot and will not discuss specifics until a potential final agreement is reached."

Teton is part owner of the Goloil license in western Siberia, 20 miles north of giant Samotlor field. Production from the Goloil license currently averages 1,250 b/d of oil from two wells. Two additional wells are shut-in, and will be put on production once the pipeline is completed. Field production is expected to increase substantially once a 25-mile pipeline is completed by yearend 2000. The Goloil license reserves are estimated at 104 million bbl of oil.

Teton has continued to fund the Goloil license during the standstill period. The pipeline is now 50% complete, one additional well has been drilled, and Teton is drilling a fifth development well.

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