SOURCE: Nevtah Capital Management Inc.

October 06, 2006 10:14 ET

Nevtah/Black Sand Energy Sign Letter of Intent for $10 Million US Joint Venture for Development of Utah Oil Sands Leases

PALM BEACH GARDENS, FL -- (MARKET WIRE) -- October 6, 2006 -- Nevtah Capital Management (PINKSHEETS: NTAH) today announced that together with its partner, Black Sand Energy Corp., they have signed a Letter of Intent with Korea Technology Industry Co., Ltd. (KTI) to develop their leases in the Utah Oil Sands.

KTI is a publicly traded company on the Korea Main Board and is headquartered in Seoul, Korea. Successful in developing several technology-based industries in electronics, biotechnology, nanotechnology and Internet commerce, the Company is now focusing on investments in innovative forms of renewable and alternative energy. KTI was one of the first groups to view the demonstrations of the joint venture partners' patented, closed-loop extraction technology in Oklahoma in September and returned this week to see the unit operating and producing oil.

As Nevtah/Black Sand Energy's investment partner, KTI will provide $10 million US to develop the joint venture partners' leases in the state of Utah, encompassing multiple leases which may include the areas of Asphalt Ridge, Sunnyside, P.R. Spring and Whiterocks. In return, the joint venture partners will contribute the mining rights to leases in these areas and will provide KTI with a total yield of 100 million barrels of oil utilizing their patented, closed-loop extraction system. The oil will be refined in Salt Lake City and KTI will sell it to the domestic U.S market. Black Sand Energy will be the operator for this joint venture project.

The joint venture of Nevtah Capital and Black Sand Energy Corp. holds the exclusive rights in Utah for this patented, proprietary system. Since the Nevtah/Black Sand joint venture project began in early 2005, Nevtah has invested over $5 million US directly into this Closed-Loop Technology Project, commencing with the construction of the original pilot plant. (See Press Release dated October 11th, 2005, "Nevtah/Cassandra Oil Sands Joint Venture Pilot Plant Mobilized...").

Nevtah Capital will continue to fund the ongoing enhancement and development of the joint venture partners' commercial production plant currently at the fabrication plant in Oklahoma. It is currently undergoing a series of improvements, testing programs and demonstrations to potential joint venture groups such as KTI and private leaseholders in the Utah Oil Sands area. At such time as the project engineers sign off on the technology in Oklahoma, the unit will be moved for oil sands extraction in Utah. Nevtah and Black Sand Energy continue to seek out other privately held lease opportunities in the Utah Oil Sands area, which is estimated to contain over 32 billion barrels of oil. (DOE Estimates)

For more information on Nevtah Capital Management, please visit the corporate website at: www.nevtahoilsands.com , or call Paul Davey, Investor Services (778) 389-0915 (Canada) (paul@nevtahoilsands.com), Daniel P. Kesonen, President & CEO, Nevtah Capital Corp., (561) 626-9901.

Nevtah Capital Management adheres to the provisions, regulations and specifications of the Safe Harbor Act.

Contact Information

  • Paul Davey
    Investor Services
    (778) 389-0915 (Canada)
    (paul@nevtahoilsands.com)

    Daniel P. Kesonen
    President & CEO
    Nevtah Capital Corp.
    (561) 626-9901