Continental, GeoPetro sell interest in Papua exploration block

Dallas-based junior oil firm Continental Energy Corporation announced Thursday that it and GeoPetro Resources Company have sold their interest in Continental - GeoPetro (Yapen) Ltd., holder of an interest in the Yapen PSC in West Papua, to Nations Energy Company Ltd. of Calgary, Alberta, Canada, for US$6,000,000 in cash.

Continental and GeoPetro are also partners in the Bengara-II Production Sharing Contract area in East Kalimantan, and have agreed to apply most of the funds from the Yapen sale to exploration and development drilling in Bengara-II. Continental owns 60% of the Bengara-II PSC.

Richard L. McAdoo, Continental's chairman and president said, "The funds received will allow us to proceed with our planned drilling in the Bengara-II Block, where we have four exploration prospects already approved for drilling in the oil prone southern part of the block, and a plan of development in progress for the Makapan Gas Field in the northern part of the block."

Nations Energy Company is a privately owned Alberta oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves internationally.(alex)