News Releases
Date: June 29, 2009
Shares Outstanding: 16,096,084
TSX: “ISR”
Forfeiture of Sujawal Block, Sind Province, Pakistan
International Sovereign Energy Corp. reports, as mentioned in its press
release of June 18, 2009, that Mari Gas Company Limited ("MGCL"), the
operator of the Sujawal Block with a 85% working interest ("WI"), now
considers that ISR was in default of non-payment of cash calls of its 15%
WI in the Sujawal Block as of June 3, 2009. Under the Joint Operating
Agreement ("JOA"), ISR has the right to remedy the default during a period
of 60 days by making payment of all its share of the cash calls with
interest at 3% over LIBOR or forfeit its WI. In the event of forfeiture,
ISR will not be entitled to receive any consideration for such forfeited
WI.
As previously reported, ISR had taken a provision of $2.8 million in
2008 against international expenditures in Pakistan, and will look for
parties to take over the obligation. ISR estimates that there will be a
charge to operations in the region of $1,000,000, as previously reported,
if the Pakistani government has a claim on the bank guarantee issued with
respective to Sukkur and Sujawal Blocks.
Forward-Looking Statements: This news release contains certain
forward-looking statements, including management's assessment of future
plans and operations, and capital expenditures and the timing thereof, that
involve substantial known and unknown risks and uncertainties, certain of
which are beyond the Company's control The Company's actual results,
performance or achievements could differ materially from those expressed
in, or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do
so, what benefits, including the amount of proceeds, that the Company will
derive there from. Readers are cautioned that the foregoing list of factors
is not exhaustive. Additional information on these and other factors that
could affect the Company's operations and financial results are included
the section entitled "Risk Factors" in the annual information form for the
year ended December 31, 2008, which is incorporated herein by reference and
is available through the SEDAR website (www.sedar.com). All
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. Furthermore, the forward-looking
statements contained in this news release are made as at the date of this
news release and the Company does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except
as may be required by applicable securities laws. The forward looking
statement about expected charges to operations may also be considered to be
future oriented financial information and the purpose of its inclusion is
to advise the reader on the possible result of the defaults discussed.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release is not for dissemination in the United States or to U.S.
persons.
TEL: [403] 263 - 2472 Eugene N. Hretzay, President & CEO
FAX: [403] 264 - 7035
E-mail: ehretzay@isove.com
Website: http://www.isove.com
|
 |
