Petromin Resources Ltd.: Letter of Intent with Heilongjiang Coal Geological Bureau
Wednesday, 21 June 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 21, 2006) - Petromin Resources Ltd. (PTR) (TSX VENTURE:PTR) is pleased to announce that it has signed a letter of Intent with the Heilongjiang Coal Geological Bureau (HCGL), China to explore and develop Heilongjiang province's coalbed methane (CBM) resources. Located in eastern China, Heilongjiang province has the largest onshore petroleum resources in China, and some of the largest coal deposits with defined acreages over 20,000 square kilometers. Individual coal seams in some of the areas are measured at 30 meters with a combined coal seams thickness of more than 80 meters, which poises an exciting challenge and opportunity to develop the CBM effectively. This letter of Intent, as signed by Petromin and HCGL, involves Petromin to providing technical expertise, technology transfer, and funding in CBM exploration and development, which includes participation in the drilling, completion, testing, and equipping of potential CBM/ECBM (i.e. CO2 sequestration) prospects on selected coal fields within Heilongjiang province. The cooperation may extend to further partners.
In July/2006, delegates from HCGL are scheduled to visit Petromin's head office in Vancouver and be touring some of Canada's CBM activities. A formal agreement is expected to be signed before the end of the year.
In addition, Heilongjiang Coal Geological Bureau, through Petromin's recommendation, has also commissioned Alberta Research Council (ARC) of Edmonton, Alberta, Canada to conduct a feasibility study related to its deep coal seams for ECBM potential and CO2 sequestration.
Petromin's management is very excited about this venture and is looking forward to the opportunity to provide the best technology and expertise in exploring these CBM resources in this area of China, establishing Petromin as a technological CBM developer in China.
While continuing to expand cashflow, Petromin is working to formalize additional agreements on a few selected overseas enviro/energy opportunities.
Concurrently, the company's third well at Frog Lake is expected to be spudded soon. The first two wells at Frog Lake have been producing approximately 200 barrels of oil/day, with Petromin's net share of production averaging over 100 bbls/day. With the three wells on stream, the net production is expected to be 160 bbls/day at Frog Lake.
ON BEHALF OF THE BOARD OF DIRECTORS
Kenny W. Chan, Chief Executive Officer
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.