Continental Energy Forms Joint Venture Biofuels Company
DALLAS, Nov. 13 /PRNewswire-FirstCall/ -- Continental Energy Corporation (OTC Bulletin Board: CPPXF) today announced that it has cofounded a new, partially-owned, special purpose, joint venture subsidiary incorporated in Delaware named Continental Biofuels Corporation ("CBC"). The Company subscribed and purchased 1,000 shares of the 2,500 issued and fully paid share capital of CBC representing a 40% stake, and largest single shareholding, in CBC.
The remaining 60% stake in CBC is held by a cofounder group of five private investors led by Casimir Capital Group LLC of New York which includes two Directors of the Company, each of whom purchased a 10% stake. The Company's CFO, Mr. James D. Eger has been appointed as the first President and CEO of CBC. During the short term the Company expects this management control to be relinquished and the Company's shareholding stake in CBC to be diluted when new investors join CBC in anticipated private or public fundings.
The Company and its management have a long track record in oil and gas exploration in remote areas of Indonesia. This experience provides contacts, knowledge of local business practices, and long standing personal relationships with Indonesian and Malaysian palm oil plantation owners and local government plantation permit providers. As a result, the Company is in a unique position to act in the role of facilitator and strengthen CBC's SE Asian operational capability and assist CBC to capitalize on palm oil plantation acquisition or development opportunities. At this time the Company does not intend to invest further working capital in CBC and expects its management role in CBC to be limited to a short term start up period. The Company views the investment in CBC as a broadening of its commercial asset base in keeping with its geographic focus on Asia, particularly Indonesia.
About Continental Energy Corporation:
Continental Energy Corporation is an international oil and gas exploration company, focused on making major oil or gas discoveries in Indonesia. For further information, please visit our web site at www.continentalenergy.com.
No securities regulatory authority has either approved or disapproved the contents of this news release.
Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the US Securities Exchange Commission.
SOURCE Continental Energy Corporation
Released November 13, 2007