Eurasia Energy Limited
OTC Bulletin Board : EUEN

Eurasia Energy Limited

February 02, 2006 09:30 ET

Eurasia Energy Limited: Company Engages Petroleum Engineering Consultants

ABERDEENSHIRE, SCOTLAND--(CCNMatthews - Feb. 2, 2006) - Eurasia Energy Limited (the "Company") (OTCBB:EUEN) announces that it has engaged TRACS International Consultancy Ltd. ("TRACS") as its petroleum engineering consultants. With a team of over 50 professionals, TRACS operates from offices in Aberdeen (Scotland), Guildford (England) and Moscow. TRACS provides technical assistance in the disciplines of geophysics, geology, petrophysics, reservoir engineering, production technology, well engineering and completions design and petroleum economics. TRACS provides its consultancy services to a wide range of companies operating in the upstream oil and gas industry including a number of the world's largest multinational oil and gas companies. TRACS has 12 years experience operating in Russia and the former Soviet Union. This experience includes Russian and FSU field studies, including exploration and appraisal, new field development and brown-field redevelopment projects, asset valuation and reserves auditing.

TRACS will work with the Company's technical team to assist in the preparation of a rehabilitation, development and exploration plan for the Company's 600 square kilometer oil and gas block (the "Block") in the Republic of Azerbaijan. This plan will form the basis of the terms of a future exploration, rehabilitation, development and production sharing agreement ("ERDPSA") between the Company and the State Oil Company of the Azerbaijan Republic ("SOCAR"). The Company's technical team is currently working with SOCAR to identify, assemble, digitize and evaluate existing production and exploration data on the Block. It is expected that members of the TRACS technical team will begin their assessment of this data by the end of February, 2006.

TRACS' project scope includes: an assessment of the existing producing fields in the Block with consideration to volumes of hydrocarbons in place, identifying opportunities for further development, estimating production profiles, assessing the capacity and integrity of existing facilities and determining economic viability. TRACS will also evaluate the potential exploration upside in the Block including an outline of an exploration and appraisal program, an outline for a notional development scheme and determining cost estimates for development.

The Company is party to a memorandum of understanding ("MOU") with SOCAR which grants the Company the exclusive right to negotiate an ERDPSA for a 600 square kilometer oil and gas block in the Republic of Azerbaijan. The Block is located in the shallow coastal waters of the Azerbaijan sector of the Caspian Sea approximately 70 kilometers south of the Azerbaijan capital of Baku.

The Block includes the producing Alat-Deniz oil and gas field and a string of seven prospective exploration structures (Hamamdag-Deniz, Garasu, Sangi-Mugan, Ulfat, Aran-Deniz, Dashly and Sabayil) trending in a south-easterly direction from the coast to seventy kilometers offshore. Water depths are predominantly up to twenty meters and reach a maximum of fifty meters at the far end of the Block. The Alat-Deniz field was discovered in 1983 and to date has produced approximately 12.5 million barrels of oil and 1 billion cubic meters of gas. SOCAR estimates recent production to be approximately 750 barrels of oil and 100,000 cubic meters of gas per day from 14 wells, and remaining recoverable reserves from the Alat-Deniz field of 15 million barrels of oil and 1 billion cubic meters of gas. The main producing horizon is at 3,700-4,500 meters depth. Available data includes low density Soviet-era seismic over the entire Block and well data from the Alat-Deniz field and several other structures. In addition there is modern seismic and well data in onshore and offshore areas proximal to the Block that may be used for interpolation.

Notable offshore projects in Azerbaijan include the Azeri-Chirag-Guneshli field estimated to hold reserves in excess of 5 billion barrels of oil, and the Shah Deniz field estimated to contain more than 400 billion cubic metres of gas. Both fields are being developed by consortia headed by BP and include other major international companies including SOCAR, Exxon, Unocal, Devon Energy, Amerada Hess, TPAO, Statoil, Lukoil and Itochu. Oil and gas will be delivered to world markets by the Baku-Tbilisi-Ceyhan (BTC) export oil pipeline to the port of Ceyhan on Turkey's Mediterranean coast, and the South Caucasus Gas Pipeline (SCP) to Turkey. In total 17 projects are at various stages of development onshore and offshore Azerbaijan, involving 27 foreign companies from 13 countries.

BY ORDER OF THE BOARD

Nicholas W. Baxter, President, C.E.O. and Director

Forward-Looking Statements: This news release may include certain forward-looking statements including, but not limited to, projections of revenue, income or loss and capital expenditures, statements regarding future operations, financing needs, plans relating to products or services of the Company, assessments of materiality, predictions of future events and the effects of pending and possible litigation, as well as assumptions relating to the foregoing. In addition, when used in this discussion, the words "anticipates", "believes", "estimates", "expects", "intends", "plans", "should", and variations thereof and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including but not limited to the Company's ability to manage rapid growth as a result of internal expansion and strategic acquisitions, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, the regulatory environment, fluctuations in operating results and other risks.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.


Contact Information

  • Eurasia Energy Limited
    Nicholas W. Baxter
    President, C.E.O. and Director
    +44 (0)7881 814431