Petromin Signs Letter of Intent to Purchase 80 Percent of Terra West Energy Corporation
Monday, 10 September 2007
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) - Petromin Resources Ltd. (TSX VENTURE:PTR) and its nominees have agreed to acquire not less than 80 per cent of Terra West Corporation (TWE). TerraWest currently owns a Production Sharing Contract (PSC) with China United Coalbed Methane Corp. (CUCBM) covering approximately 655 square kilometers (162,000 acres) in Xinjiang Jungaer Basin. The CBM gas production on this PSC has a government tax and royalty exemption. This agreement is scheduled to close on or before October 15, 2007, giving Petromin 45 days to complete its due diligence.
Founded in 2004, Terra West Corporation is a privately owned CBM development company established by the principles of Norwest Corporation - Canada's premier coal / CBM consultants. In 2004, TWE negotiated a Production Sharing Contract ("PSC") with PetroChina and CUCBM, receiving full approval in December 2005. It is the first and only CBM PSC in China on PetroChina lands.
The Junggar Basin in Xianjiang lies in the Northwest corner of China, and is highly prospective for CBM reserves due to its thick coals and high gas content. In addition to vast gas reserves, the project area is linked to the West-East gas pipeline owned and operated by PetroChina. The pipeline is the key transportation vehicle in moving gas from the resource rich west to the densely populated and industrlized East. Spanning over 10 Chinese provinces, the annual gas transmission capacity is estimated by PetroChina at 420 Bcf.
Petromin is currently completing the due diligence, and anticipates releasing further details shortly.
On Behalf of Petromin Resources Ltd.
Kenny W. Chan, Co-Chairman and Chief Executive Officer