SOURCE: Tekoil & Gas

October 26, 2005 08:30 ET

Tekoil’s CEO Discusses the Company’s Plans for Building Long Term Shareholder Value

THE WOODLANDS, TX -- (MARKET WIRE) -- October 26, 2005 -- Tekoil & Gas Corporation (OTC: TKGN) Chairman and CEO, Mark S. Western, offered the following regarding the company's plans for building long term shareholder value:

“Our management team is now positioned to build a long term business with significant long term value. We have only recently added Richard Creitzman to the Tekoil team, and his experience as the Head of Corporate Finance for Russian oil giant Sibneft will no doubt prove invaluable. Richard secured more that $900 million in unsecured finance, and over $2 billion in secured finance during his three-year tenure with the company, and he also helped to increase shareholder value by more than 250%.

"As a small company it is often difficult to attract people of Richard’s caliber, but we have done just that, and have already begun to see the results. We are obviously going to leverage Richard’s experience and are taking calculated steps to secure the company‘s long term future. We have recently completed Tekoil’s capital restructuring and are now preparing for audits to move the company to the OTC:BB during the first quarter of 2006.

"With the cutting-edge technology available in today’s market, we plan to maximize yields, maximize total recovery, and maximize the economic value of our assets. Concerning Canada, we are using a small but specialized and highly skilled team of geologists, geophysicists, reservoir engineers and developers. We have a world-class Development Plan, and upon completion of our 3D Seismic and 'next step technology' inversion program, we expect to have our first production well completed by the end of 2006. By that time we will have already established Tekoil as a solid Company, with a strong share price and a compelling upside for investors.

"Moving forward, we believe that Tekoil and its shareholders will reap huge rewards as we further develop prospect one, which we expect to be producing 20,000-plus barrels of oil per day by 2009. When considering the 400,000,000-plus barrel potential of prospects two and three, we have every reason to believe that Tekoil will become a multi-billion dollar market cap company.

"Finally, our management team believes that if you focus on building a strong business, everything else including the stock price will take care of itself. We wish you well in your investment choices, and hope that your financial objectives are suited to our long term plans for success.”

About Tekoil & Gas Corporation:

Houston-based Tekoil & Gas Corporation is a technology-driven, oil and gas exploration and Production Company that utilizes advanced production technologies. The company is focused on the development, acquisition, stimulation, rehabilitation, and asset improvement of small to medium-sized oil and gas fields throughout the North American Continent. The combination of energy fuel reserves and advanced yield technologies are anticipated to generate value for Tekoil and its stakeholders, as the company targets above-average growth in the 21st century energy sector. Additional news and information will be made available on the Tekoil website at www.tekoil.com, and through further press releases as acquisitions and development projects are executed.

Forward-Looking Statements:

This news release may contain certain forward-looking statements, including declarations regarding Tekoil and its subsidiaries' expectations, intentions, strategies and beliefs regarding the future within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements contained herein are based upon information available to Tekoil management as at the date hereof and actual results may vary based upon future events, both within and without the control of Tekoil management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that additional acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, governmental regulations and other factors.

Contact Information

  • Contact:
    Tekoil & Gas Corporation
    Mr. Eric Ottens
    Executive VP
    Tekoil & Gas Corporation
    erico@tekoil.com