SOURCE: Nevtah Capital Management Inc.

May 01, 2007 11:17 ET

Korea Technology Industry (KTI) Issues Operations Update to Korean Investors on Its Joint Venture Agreement With Nevtah/Black Sands Energy Project in the Utah Oil Sands

PALM BEACH GARDENS, FL -- (MARKET WIRE) -- May 1, 2007 -- Nevtah Capital Management (PINKSHEETS: NTAH) and its joint venture partner, Black Sands Energy, today announced the disclosure, by Korea Technology Industry Co. Ltd. (KTI) to its Korean investors, of developments in their joint venture agreement in the Utah oil sands (See Press Release dated January 12, 2007).

Translated directly from KTI's release, Seoul, Korea:

"After a favorable independent engineering study, KTI has announced an expanded involvement in the development of Nevtah/Black Sands Energy's leases in the Utah oil sands area. The Company plans to initially invest $29 million USD in the development, which represents the second largest Korean investment in North American oil sands projects. KTI's business model forecasts the production of 2000 bbl/day by the end of July 2007, which coincides with the completion date of the joint venture partner's first commercial production unit. The Company projects production of 12,000 bbl/day by the end of 2007 through the use of several multi-pod production units on several lease locations throughout the Asphalt Ridge/Whiterocks Deposits. KTI expects to ramp up production to over 50,000 bbl/day by the end of 2009."

Prior to Nevtah/Black Sands' development of their patented, closed-loop production process, the petroleum industry has not been able to develop an economic, cost-effective method of extracting oil from oil sands without the extensive use of water. The joint venture's process utilizes benign, non-toxic solvents which are recycled in a closed-loop system so that both cost and environmental impact issues are met. This unique system, combined with pressure and temperature, is now ready for commercial application. Direct mining and extraction processing costs are estimated at $12.00 to $13.00 USD per barrel, which offers payouts similar to conventional oil drilling. Proponents of the closed-loop system have stated that the process is scaleable, portable, flexible, low-cost, low-energy, low-manpower, low-emission, earth-friendly, easy-to-operate, leaves a small footprint and has a rapid payout.

For more information, please see the Company website at: www.nevtahoilsands.com or call Paul Davey, Investors Services, (778) 389-0915, email at: paul@nevtailsands.com. Or contact Daniel Kesonen, President & CEO at (561) 626-9901. Nevtah Capital Management adheres to the provisions, regulations and specification of the Safe Harbor Act.

Contact Information

  • Paul Davey
    Investors Services
    (778) 389-0915
    email: paul@nevtailsands.com

    Daniel Kesonen
    President & CEO
    (561) 626-9901