Stratic resumes Turkey gas production

Stratic Energy Corporation’s production has re-commenced from its Black Sea gas fields offshore Turkey. This follows the suspension of production in late November 2007 as a result of damage to the pipeline system caused by a fishing boat trawling in the exclusion area around the production facilities.

Following completion of repairs to the gas pipelines, production has resumed from both the Akkaya and East Ayazli fields and is expected to start from the Ayazli field by the end of this month. Current production levels of approximately 17 mmscf per day (gross) are expected to increase over the coming weeks as the operator completes well clean-up, intervention and stabilisation procedures on certain wells, which are presently underway.

Revenues from these assets will benefit from recent increases in the reference gas price in Turkey applicable to Stratic’s gas sales contract. The gas sales price under the contract, at current exchange rates, is equivalent to approximately US$10 per mscf for February 2008, compared with an average of $8.76 per mscf in the third quarter 2007 and $9.34 per mscf in October and November 2007.

Stratic’s interest in the relevant licences offshore Turkey is 12.25%, and the operator is TPAO.