RE: oil and gazAcquisition
Vancouver, British Columbia – Regent Ventures Ltd. (“Regent”) is pleased to announce that it has received acceptance for filing with respect to its application to the TSX Venture Exchange for the approval for the acquisition of a 22.5% interest in McCallan Oil & Gas Ltd. (“McCallan”), a private United Kingdom company that holds a 51% interest in two joint operating agreements, one with respect to an oil and natural gas concession comprising 4,300 square kilometres in the Carpathian Mountains in Poland, and the other with respect to a coal bed methane gas concession comprising 115 square kilometres in the Upper Silesian basin of Poland. As mentioned in our previous news release on March 2, 2006, Regent will not have to contribute to the capital costs of developing these oil, gas and methane gas concessions but will share pro rata in any profits derived from production from these interests.
In accordance with the terms of the transaction, Regent has paid $75,000 in cash to Mr. Hans Dietmann of Vienna, Austria (the “Vendor”) and will issue 2,250,000 shares of Regent to the Vendor. 2,000,000 of the shares will remain in escrow until such time as the Vendor can demonstrate that he has secured the exploration funding for the concessions. Regent will issue a further 1,000,000 shares to the Vendor for each oil, gas or methane gas well placed in commercial production by McCallan up to a maximum of 25 producing wells.
Regent has been advised by the Vendor that on January 13, 2006 he has entered into an agreement with AAA Capital Energy AG (“AAA”), a German Energy Fund, to sell a 55% interest in McCallan to AAA in return for AAA committing to provide in the order of $100,000,000 in capital contribution to McCallan over two years to fund the exploration and development of the concessions. Under the terms of the January 13, 2006 Agreement McCallan is to receive a total of US$23,000,000 on or before April 30, 2006 with the balance to be received in several tranches on or before December 31, 2007.