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| Seven Seas Provides Update on Reorganization |
Receives Official Notice That Deep Dindal Association Contract to Be
Terminated
HOUSTON, Oct. 3 /PRNewswire-FirstCall/ -- Seven Seas Petroleum Inc.
(OTC Pink Sheets: SVSSF) announced today that the Company has received notice
from Ecopetrol confirming termination of the Deep Dindal Association Contract.
The Company must meet statutory obligations with the Ministry of Mines and
Environment of Colombia before plugging and abandoning the well. The Company
has escrowed the necessary funds to cover budgeted plugging and abandonment
costs.
As previously announced, the Company has no source of cash flow and is
working to create value from several contingent assets for the benefit of its
creditors, whom the Company owes over $150,000,000. Pursuant to the Plan of
Reorganization approved by the bankruptcy court, effective August 14, 2003,
all secured, unsecured and administrative claims will be paid before the
Company's shareholders.
The contingent assets consist of potential recoveries from litigation
against the Company's former directors and officers, historical net operating
losses in the Company's Colombian subsidiaries, and the Company's estimated
2003 Colombian tax refund. Value of the contingent assets is highly
speculative and it is uncertain whether any of the contingent assets will
result in recoveries for the Company's creditors.
Even if Seven Seas is successful in obtaining maximum value for each of
the contingent assets, it currently appears unlikely that there will be any
recovery for the Company's shareholders.
Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act. The statements involve risks that could significantly
impact Seven Seas Petroleum Inc. These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
SOURCE Seven Seas Petroleum Inc.
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CONTACT:
Daniel Drum, Investor Relations of Seven Seas
Petroleum Inc., +1-713-622-8218
