Methanex Announces Agreement With GeoPark to Secure Natural Gas for Chile Operations
November 26 2007 - 9:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA (NASDAQ: MEOH)(SSE: Methanex)
announced today that it has signed a natural gas prepayment
agreement with GeoPark Holdings Limited. Methanex will provide
US$40 million in financing to support and accelerate GeoPark's
natural gas exploration and development activities in the Fell
Block in Southern Chile. Under the arrangement, GeoPark will also
provide Methanex with natural gas supply sourced from the Fell
Block under a ten year supply agreement. GeoPark has been
increasing its gas supply to Methanex since 2006 and its goal is to
provide up to 10% of Methanex's total natural gas needs in Chile by
the end of 2008.
Methanex's Latin America Senior Vice President, Paul Schiodtz,
commented, "This prepayment agreement represents an important step
to restore secure, long term gas supply to our plants in Chile. We
are delighted to be working closely with GeoPark who have been very
successful both discovering new gas and investing in infrastructure
to increase natural gas deliveries to our plants."
Mr. Schiodtz continued, "We are also very pleased with the
results in the bidding process for oil and gas exploration in the
south of Chile. The Chilean Government recently announced the
participation of five other international oil and gas companies in
gas exploration and development in areas which are all very close
to our plants."
James Park, CEO of GeoPark added, "This strategic alignment of
Methanex and GeoPark strengthens both companies - by increasing the
supply of natural gas in Chile for Methanex and by underpinning the
long term development of GeoPark's natural gas reserves. The
agreement secures an economic long term market for all of GeoPark's
Chilean gas production while also providing a source of financing
to accelerate capital investment."
Methanex is a Vancouver based, publicly traded company engaged
in the worldwide production, distribution and marketing of
methanol. Methanex shares are listed for trading on the Toronto
Stock Exchange in Canada under the trading symbol "MX", on the
NASDAQ Global Market in the United States under the trading symbol
"MEOH", and on the foreign securities market of the Santiago Stock
Exchange in Chile under the trading symbol "Methanex". Methanex can
be visited online at www.methanex.com.
GeoPark is a Latin American oil and gas producer and explorer
with properties in Argentina and Chile. GeoPark shares are listed
for trading on the Alternative Investment Market (AIM) of the
London Stock Exchange under the trading symbol "GPK". GeoPark can
be visited online at www.geo-park.com.
Information in this press release contains forward-looking
statements. Certain material factors or assumptions were applied in
drawing the conclusions or making the forecasts or projections that
are included in these forward-looking statements. Methanex believes
that it has a reasonable basis for making such forward-looking
statements. However, forward-looking statements, by their nature,
involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by the forward-looking
statements. The risks and uncertainties include those attendant
with producing and marketing methanol and successfully carrying out
major capital expenditure projects in various jurisdictions, the
ability to successfully carry out corporate initiatives and
strategies, conditions in the methanol and other industries
including the supply and demand balance for methanol, the success
of natural gas exploration and development activities in southern
Chile and our ability to obtain any additional gas in that region
on commercially acceptable terms, actions of competitors and
suppliers, changes in laws or regulations in foreign jurisdictions,
world-wide economic conditions and other risks described in our
2006 Management's Discussion & Analysis. Undue reliance should
not be placed on forward-looking statements. They are not a
substitute for the exercise of one's own due diligence and
judgment. The outcomes anticipated in forward-looking statements
may not occur and we do not undertake to update forward-looking
statements.
Contacts: Methanex Corporation Jason Chesko Director, Investor
Relations (604) 661-2600 Website: www.methanex.com
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