TSX Venture: AUL
VANCOUVER, Aug. 2 /CNW/ - Austin Developments Corp. (TSX Venture: AUL)
(the "Company") is pleased to announce that Petrol One Corp. (CNQ Exchange:
PONE) ("Petrol One") has signed a Memorandum of Agreement ("MOA") with KM
Energy of Seoul, South Korea to create a Joint Venture Partnership to be named
"Petro KME" to be based in Dubai, UAE to manage its existing property in
Gabon, Central West Africa and possible future holdings in Africa, Asia and
the Middle East. In consideration of Petrol One and its current partners
contributing the Gabon properties to the Joint Venture, Petrol One will retain
21.4 % interest in the project in the properties.
KM Energy represents a consortium of Korean companies that include:
Daewoo International, LG International, Hyundai E&C, Posco E&C, Ssangyong,
Woolim, SN Energy, Doosan, Kumho Group, and STX E&C.
Petro KME will be responsible for the overall management of the Petrol
One's oil and gas projects, providing the necessary technical expertise as
well as the financial resources required. KM Energy will provide an initial
USD $25,000,000 (USD twenty five million) to Petro KME which will be utilized
in part to fund the ongoing operations in Gabon including the work program to
be proposed for the Nkani G4-222 property in meetings to be held in
Libreville, Gabon in late September 2007.
Petrol One will hold 33% (thirty three percent) of the shares of Petro
KME with 67% (sixty seven percent) of the shares held by KM Energy of South
Korea. Petro KME will be managed by a seven man Board of Directors, two of
whom (including the Chairman of the Board) will be named by the Company. All
decisions of the Board of Directors must receive unanimous approval in order
to be carried.
Petrol One will pay a 3% finder's fee to a company headed by Camilo
Gonzales of Saudi Arabia for its assistance in arranging the agreement with KM
Energy. Petrol One and its previous partners will operate under the same terms
and conditions as the previous Participation Agreement entered into with
Austin Developments with all percentages remaining the same; i.e. the Company
will retain 18% of the 30% interest in Petro KME (5.6%), Petrol One will
retain 72% of the 30% interest in Petro KME (21.4% of overall project), and
the ATAS Group will retain 10% of the 30% (3%). These relative percentages
will carry forward to any other oil and gas projects included in the agreement
with Petro KME.
KM Energy will also provide the financing necessary to pursue other
opportunities within the oil and gas sector throughout Africa, Asia and the
Middle East that the Company, through its network and affiliations, will bring
before the Board of Petro KME for its consideration.
On behalf of the Board of Directors
Austin Developments Corp.
President and Director
Statements in this document which are not purely historical are
forward-looking statements, including any statements regarding beliefs, plans,
expectations or intentions regarding the future. Forward-looking statements in
this release include statements regarding plans to create a Joint Venture
Partnership to be named "Petro KME" to manage property in Gabon, Central West
Africa and possible future holdings in Africa, Asia and the Middle East; that
KM Energy will provide an initial USD $25,000,000 to Petro KME to fund the
ongoing operations in Gabon for the Nkani G4-222 property; that KM Energy will
also provide the financing necessary to pursue other opportunities within the
oil and gas sector throughout Africa, Asia and the Middle East; and that our
goal is to become a highly profitable company. It is important to note that
actual outcomes and the Company's actual results could differ materially from
those in such forward-looking statements. Factors that could cause actual
results to differ materially include risks and uncertainties such as the
unforeseen difficulties in finalizing JV terms or specific projects, or use of
funds between the JV partners, and the possibility that no projects are deemed
sufficient or reasonable for Petro KME to pursue. In addition, despite
encouraging data, there may be no commercially exploitable resource on
properties targeted by us with our JV partners; and even if there is, profits
depend on a substantial number of factors such as resource pricing, cost of
production, and many other factors too numerous to list. Readers should also
refer to the risk disclosures outlined in the Company's Management Discussion
and Analysis of its audited financial statements filed with the British
Columbia Securities Commission.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: AUSTIN DEVELOPMENTS CORP., Suite 2833, 595
Burrard Street, Vancouver, British Columbia, V7X 1C4, Tel: (604) 689-1799,
Fax: (604) 689-8199