HADRO RESOURCES INC. (OTC BB - HDRS)
FOR IMMEDIATE RELEASE Reno, Nevada December 14, 2000
BUSINESS EDITORS:
Hadro Resources Inc. common stock is traded under the symbol HDRS on the
OTC Bulletin Board in the United States.
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HADRO RESOURCES INC. ANNOUNCES INTENTION TO PURCHASE
100% INTEREST IN SLOVGOLD DEUTSCHLAND GmbH
LETTER OF INTENT EXECUTED: Hadro Resources, Inc. (OTCBB: HDRS) (the "Company",
"Corporation") is pleased to announce that it has signed a letter of intent to
purchase a 100% interest in Slovgold Deutschland GmbH ("Slovgold Germany"), a
Berlin based oil and gas exploration and development company with oil and gas
interests located in the Ukraine, and Russia. Subject to the completion of due
diligence in process, the Company plans to issue approximately 7.7 million
restricted common shares in return for a 100% interest in Slovgold Germany. The
Company has incorporated a wholly owned subsidiary, Eiger Properties, Inc., a
Belize registered company, that would own the 100% interest in Slovgold Germany
on the Company's behalf.
ABOUT SLOVGOLD GERMANY: The potential acquisition brings a German incorporated
oil and gas exploration and development company investigating 10 separate oil
and gas projects that range from low risk, large scale ready to drill and
finance implementations with proven resource capacity, to smaller scale startup
prospects, all located in the Ukraine, and Northern Siberian areas of Russia.
The interests are in various stages of exploration, licensing, and negotiation
by professional internal and externally contracted geological, engineering, and
economic feasibility specialists.
The acquisition will bring exploration and operating offices in Berlin, Germany,
and Lviv, Ukraine and corporate offices to be located in London, England.
Current arrangements and licenses obtained by Slovgold Germany require it to
provide all capital required for financing all exploration and development, with
future anticipated well revenues to be split 70/30 to Slovgold Germany until
capital is fully repatriated, and then revert to a 50/50 profit split. This
situation is reasonable given the potential reserves in place and lower degrees
of risk inherent to the situations, and the fact that capital costs of drilling
and well completion are approximately 1/3 of similar costs when compared to
capital required for drilling and well completion in North America. Slovgold has
issued an option to Eurogas, Inc. (OTCBB: EUGS) for a 50% interest in Slovgold's
portion of any of its European projects under assessment or development in
return for 50% of any required development financing.
Slovgold Germany Project Primary Targets: Slovgold has a joint activity
agreement with the Ukrainian Government's Chernigivneffegas Geologya for its
Sribnansky mega atoll in Eastern Ukraine ("U Prospect") that comprises territory
of 1,329 square kilometers that comprises oil in place of approximately 770
million bbls of low viscosity, low resin content, low paraffin content, without
hydrosulphide combination oil. The Company and its Ukrainian partner have
centered on two smaller targets within this prospect as initial targets:
U-Prospect - Seliukhivska - Proved and Probable oil of 43 million bbls, with 6
wells drilled with oil proved in four wells with two wells capable of outputting
224 and 500 bbls per day. Acidification is expected to increase production. The
area is approximately 27 square kilometers in size.
U-Prospect - Skorobohatkivske - Existing producing field, 2 gas wells drilled,
with gas production of 3.5 million cubic feet per day per well, with an estimate
of $270,000 capital cost per drilled/completed well. Risks are deemed minimal.
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Slovgold Germany Project History: The Ukrainian area targets are part of the
greatest oil and gas anomaly in the Ukraine - the north west portion of the
Dnepr-Donetsk depression. Before the fall of the USSR, that country's production
focus had recently moved to the vast new field discoveries in Siberia, leaving
areas like the Ukraine underfunded and in need of well and infrastructure
upgrades. When the USSR fell, funding for expansion of existing reserves and
exploration prospects in the Ukraine got worse. Production sometimes was halted
for lack of capital to maintain necessary links in infrastructure or well
maintenance. This situation has opened the door to foreign investment and
Slovgold's entrance into those markets. Joint venture exploration and
development relationships have been forged with the Ukrainian government, and
with industry players in the exploration areas.
About the Company: Hadro Resources, Inc. is a natural resource exploration
company engaged in the acquisition of oil and natural gas properties for
exploration and development in the United States. Subject to financing, the
Company plans to undertake drilling for oil and gas in the US. The Company is
currently assessing other potential oil and gas exploration acquisitions.
For further information:
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Contact: Gary Powers, Investor Relations
Phone: (800) 209-2260 or (360) 332-1644 Fax: (360) 332-1643
SAFE HARBOR STATEMENT
orward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, commodity prices of precious
metals and actual results differing materially from projections because of
geological factors, operation factors, government regulations or factors relied
upon from independent sources, may either negatively or positively impact
exploration or mining operations. Forward-looking statements involve known and
unknown risks and uncertainties that may cause the Company's actual results in
the future periods to differ materially from forecasted results. The Company
assumes no obligation to update the information in this release.
