Big Sky Energy Corporation

Big Sky Energy Corporation

January 02, 2007 03:42 ET

Big Sky Energy Corporation Announces the Commencement of Crude Oil Export Sales

CALGARY, ALBERTA--(CCNMatthews - Jan. 2, 2007) - Big Sky Energy Corporation (PINK SHEETS:BSKO) (the "Company") announced today that its subsidiary, KoZhaN LLP, has received the Kazakh Ministry of Energy and Mineral Resource's approval to export and sell its crude oil at world prices starting in January 2007.

Based on this approval, the Company has entered into a contract with Euro-Asian Oil AG to sell for export 60,000 tonnes (approximately 400,000 barrels or 1,100 bopd) in 2007. The Company will receive world oil price, which, adjusted for transportation and crude quality, has a current price of approximately $40 per barrel. The Company has also pre-sold to Euro-Asian Oil $US2,500,000 of its production against delivery under this contract.

In addition, the Company has entered into a contract with Sunoil LLP to sell additional production which must be allocated to the domestic market in 2007 at $190 per tonne ($27 per barrel). During 2006, its first year of production, the Company received approximately $20 per barrel for its domestic sales.

The Company estimates that it will sell 36 000 tonnes (approximately 240,000 barrels or 650 bopd) domestically in 2007. This estimate does not include any production additions from its 2007 drilling program.

While the Company finishes upgrading its oil treatment facilities at its Morskoe Block this year, it will truck and process its production at third party facilities. Together these costs are approximately $4 per barrel and must be deducted from the above oil prices to yield a net wellhead price.

"We have attained a significant milestone in our Company's evolution", stated Dr. Harunoglu, the Company's President and CEO, "We enter 2007, our second year of production, with the right to export of our crude production which significantly increases our revenue, and with reliable off take and third party processing contracts in place for the year. As a result we look with confidence to growing our production and our Company from our own cash flow."

Big Sky Energy Corporation is a US junior oil and gas company currently operating in Kazakhstan's renowned pre-Caspian Basin.

Note: The information contained in this press release contains forward looking statements which are based on the current expectations of the management of Big Sky Energy Corporation only, and actual results may differ materially. For a more detailed discussion of risks and other factors related to Big Sky Energy Corporation, please refer to its 10-KSB and 10- QSB reports filed with the U.S. Securities and Exchange Commission.

Contact Information

  • Big Sky Energy Corporation
    Mr. Matthew Heysel, P.Eng.
    (403) 234-8282
    (403) 265-8808 (FAX)
    Big Sky Energy Corporation
    Dr. Servet Harunoglu
    CEO and President
    7.3272.597.628 (FAX)