TG World Energy Corp.
TSX VENTURE : TGE

TG World Energy Corp.

August 09, 2005 10:11 ET

TG World Energy Corp. Tenere Concession Update: Algeria's Sonatrach Has Reportedly Acquired Adjacent Niger Kafra Exploration Block

CALGARY, ALBERTA--(CCNMatthews - Aug. 9, 2005) -

According to various news reports:

- Algerian National Oil Company, Sonatrach, signs agreements respecting adjacent Kafra Block

- Kafra Block forms northern continuation of Cretaceous-Tertiary Rift System containing TG World's Tenere Block and Exxon/Petronas' Agadem Block

- Sonatrach commits to acquire minimum 1,000 km new 2D seismic in 4 years, at estimated minimum US$6 million cost

- Move evidences additional interest and activity in Niger; reaffirms Sonatrach interest; maintains momentum for Algerian pipeline option to the Mediterranean

TG World Energy Corp. (TSX VENTURE:TGE) ("TG World") announced today that, according to recent news reports, the Algerian national oil company, SONATRACH, has acquired the right to explore Niger's Kafra Block, the southern border of which forms part of the northern border of the Tenere Block. Management of TG World is of the opinion, based upon its knowledge of regional geology, that the Kafra Block contains a continuation of the Cretaceous-Tertiary rift basin system to the north of TG World's Tenere Block, abutting against the Niger-Algerian border. The Kafra Block is contiguous with the Algerian exploration block, Tafassasset, held by Sonatrach on the Algerian side of the border.

The Exploration Permit is reported to cover 23,737 square km, with a work commitment of 1,000 kms of 2D seismic (firm) in the first 4-year exploration period; 400 km seismic and two wells in a second exploration period; and 400 km and one well in a third exploration period. Minimum program expenditures are estimated in news reports at US$6 million (firm) for the first exploration period; US$15 million for the second period; and US$8.5 million for the third period, for a total of US$29.5 million.

According to the news reports, the Sonatrach commitment, undertaken through its recently formed subsidiary, Sonatrach International Exploration and Development Corporation (Sipex), was signed in Niamey, capital of Niger, on June 9, 2005, by Sonatrach's President Mr. Mohamed Meziane. The signing ceremony is reported to have been attended by the Algerian Energy and Mines Minister Mr. Chakib Khelil and the Niger Mines and Energy Minister Mr. Mohamed Abdoulahi, as well as Niger Ministry officials and other Sonatrach representatives.

"The reports of Sonatrach's involvement in Niger are positive for TG World," said TG World's CEO, Cliff James. "We worked closely with Sonatrach for several years on various aspects of the Tenere Block. Prior to our involvement with the current Tenere Block Operator, CNPC International (Tenere) Ltd. ("CNPCIT"), a subsidiary of the China National Petroleum Corporation ("CNPC"), Sonatrach had committed to take 20% of the Tenere Block. A strong commitment to Niger on the part of Sonatrach would, in our view, add to the momentum of activity in the country generally, and to those forces keeping the door open for an eventual pipeline system to the Mediterranean through Algeria in particular."

TG World holds a 20% Carried Interest in the Tenere Permit, Niger, and the Operator, CNPCIT, holds an 80% interest. The minimum work program on the Tenere Block consists of 1,500 km seismic acquisition and three exploration wells. The minimum seismic acquisition obligation has been fulfilled. On June 18, 2005, CNPCIT completed the acquisition of 1,686.525 km of new 2D seismic. The seismic data, which is considered of high quality by both TG World and CNPCIT, is currently being processed in a processing facility constructed in Niamey by CNPCIT. TG World has independently processed some of the data in Calgary for purposes of comparison and control, and both companies will shortly be proceeding to interpretation of the data and preparation for further activity, subject to approval of the Tenere Operating Committee.

The information set out in this press release respecting the activities of Sonatrach in Niger is based upon third-party news reports (principally French language journals in Africa) and is not information confirmed to TG World directly by Sonatrach or government authorities in Niger. Readers are cautioned that all or a portion of the information contained in this news release that is sourced from third-party sources may contain errors or omissions and such errors or omissions may be material.

The statements herein that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as expect, may, anticipate or will and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Although the Corporation believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied by forward looking statements. TG World Energy Corp. does not assume responsibility for the accuracy and completeness of the forward looking statements and, subject to applicable law, does not undertake any obligation to publicly revise such forward looking statements to reflect subsequent events or circumstances. The forward looking statements of TG World Energy Corp contained in this News Release or expressly qualified, in their entirety, by this cautionary statement. The various risks associated with the Tenere Block are more fully described in the Material Change Report, filed by the Corporation on SEDAR on September 7, 2004 and which is available at www.SEDAR.com.

TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TG World Energy Corp.
    Clifford M. James
    President & CEO
    (403) 265-4506
    (403) 264-7028 (FAX)
    Website: www.tgworldenergy.com