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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.
Per:
"Patrick Power"
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Patrick Power
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.