Eurasia Energy Limited
OTC Bulletin Board : EUEN

Eurasia Energy Limited

April 05, 2007 09:30 ET

Eurasia Updates Progress of Legal Proceedings and Adopts 2007 Stock Option Plan

ABERDEENSHIRE, SCOTLAND--(CCNMatthews - April 5, 2007) - Eurasia Energy Limited ("Eurasia") (OTCBB:EUEN) provides the following review and update of the legal proceedings which it faces in Scotland.

On October 10, 2006, Eurasia announced that the Company and its Chief Executive Officer, Nicholas W. Baxter, had been named in a lawsuit commenced in the Court of Session in Edinburgh, Scotland. The pursuers in the action were Arawak Energy Corporation ("Arawak") and its wholly owned subsidiary, Commonwealth Oil & Gas Company Limited ("Commonwealth"). Arawak and Commonwealth alleged that in the course of his directorship, Mr. Baxter breached his fiduciary duty as a director and accessed and used confidential information relating to Arawak and Commonwealth oil and gas properties in Azerbaijan for the purpose of securing Eurasia's MOU for its block in Azerbaijan. Our company was made a party to the action as an alleged knowing recipient of confidential information and of a commercial opportunity diverted to it in breach of fiduciary duty. Arawak and Commonwealth were seeking US$17.2 million in damages from Mr. Baxter, a declaration that Eurasia holds its MOU in trust for the benefit of Arawak and Commonwealth and an accounting of profits failing which payment of US$100 million or alternatively damages against Mr. Baxter and Eurasia for breach of confidence in the same amount. Our company and Mr. Baxter retained joint counsel and filed an appearance and defence.

The parties have appeared twice before Lord Reed of the Commercial Court on preliminary matters. Both the pursuers and the defenders have amended their original pleadings. On February 22, 2007, Arawak and Commonwealth amended their pleadings to remove the allegations of misappropriation of confidential information and breach of confidence and the principal pursuer, Arawak, has sought to remove itself from the action. In the alternative to the claim for an accounting of profits, there was added a claim for damages in the amount of US$100 million against Mr. Baxter and Eurasia in respect of an alleged breach of fiduciary duty to Commonwealth.

Our company is optimistic that the claims against it and Nicholas Baxter will be defended successfully. However, the outcome of litigation is often uncertain and the matter remains before the Scottish courts. Accordingly, our company will reserve comment on all but the most basic elements of the lawsuit. Trial of this matter has been scheduled to commence on August 28, 2007.

Eurasia has established a 2007 stock option plan and has authorized the issuance of up to 2,000,000 common shares at $0.25 per share pursuant to the plan. Additionally, Eurasia's directors have reduced the exercise price of the 2,000,000 common shares authorized under Eurasia's 2006 stock option plan from $1.00 to $0.25 per share. The reduced exercise price of options issued under the 2006 stock option plan and pricing of options to be issued under the 2007 stock option plan are still at a premium to the current price of our shares. Our officers are working on behalf of our company without cash remuneration. The $0.25 pricing of stock options is intended to incentivize management to continue working towards resolution of the outstanding lawsuit and to re-establish negotiations with SOCAR in Azerbaijan.

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