CALGARY, Alberta, May 31 /PRNewswire/ -- The following was released on
behalf of the Board of Tracer Petroleum Corporation, by David Robinson,
President and CEO:
Tracer Petroleum Corporation (OTC Bulletin Board: TCXXF) ("Tracer" or the
"Company") announces the results of operations for the period ending
March 31, 2001. Net loss for the three-month period was $438,159, or $0.05 per
share, versus a loss of $398,383, or $0.07 per share for the first three
months of 2000. The loss is primarily due to expenses related to the continued
pursuit of petroleum development projects and other business opportunities in
the Islamic Republic of Iran.
As at March 31, 2001, total assets on Tracer's balance sheet were
$1,166,548, versus total liabilities of $482,303. Shareholders' equity as at
March 31, 2001, was $684,245. The Company has closed on US$184,057.60 of the
private placement announced on December 19, 2000.
The complete First Quarter 2001 Financial Statements and a detailed
Management Discussion and Analysis can be found on the Company's web-site at
http://www.tracerpetroleum.com, and can also be found on SEDAR at http://www.sedar.com.
During the quarter, the Company sold its 4.5% equity interest in Open
Joint Stock Company Caspi Neft ("OJSCCN") to Transmeridian Exploration Inc.
("TMEI") for US$1.5 million of convertible preferred shares of TMEI plus 1
million warrants exercisable at US$1.00 per share for a period of 2 years.
The preferred shares are convertible into 1.5 million common shares of TMEI at
a deemed value of US$1.00 per share at any time within 5 years. OJSCCN owns
the exploration and production rights for the South Alibek field in the
Aktyubinsk region of the Republic of Kazakhstan. TMEI, the operator of the
field, is in the process of completing the necessary filings with the United
States Securities and Exchange Commission in order to become a publicly-traded
company.
Also subsequent to the end of the quarter, Tracer entered into an
agreement with Roc Oil Company Limited ("ROC") of Sydney, Australia, whereby
ROC may provide up to US$4 million of financing to the Company by way of a
convertible loan. The financing is to be used by Tracer to solely pursue a
specific, significant upstream petroleum development opportunity in Iran that
has been identified by ROC and Tracer.
Recently, Tracer was provided with information on 18 different petroleum
fields in Iran that may be available to the Company for development. Tracer's
technical team is reviewing this new information, while the Company continues
to pursue other projects in Iran that have been offered to Tracer.
This release contains "forward-looking statements" as per Section 21E of
the U.S. Securities and Exchange Act of 1934, as amended. Although the
Company 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. Management is currently reviewing many
options and there is no assurance that they will not make decisions other than
those now contemplated. The Company is subject to political risks and
operational risks identified in documents filed with the Securities and
Exchange Commission, including changing and depressed oil prices, unsuccessful
drilling results, change of government and political unrest in its main area
of operations
For more information please contact Mr. David Harrison, Corporate
Secretary, at 403-290-1676 at the Company's headquarters:
TRACER PETROLEUM CORPORATION, Suite #910, 441 - 5th Ave. S.W.,
Calgary, AB, T2P 2V1 Canada
Phone: 403-290-1676 or Fax: 403-264-5285, "e-mail"
tracerinfo@tracerpetroleum.com or web site, http://www.tracerpetroleum.com
SOURCE Tracer Petroleum Corporation
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Related links:
http://www.tracerpetroleum.com
CONTACT:
David Harrison, Corporate Secretary of Tracer
Petroleum Corporation, 403-290-1676
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