Investment in Paraguay

    RNS Number : 6557F
  CDS Oil & Gas Group PLC
  13 October 2008
   


    CDS OIL AND GAS GROUP PLC ("CDS" or the "Company")
                                                             INVESTMENT IN PARAGUAY    


    13 October 2008


    Representatives of CDS together with members of PetroSaudi International Ltd ("PetroSaudi") including Mr. Tarek Obaid (CEO and partner
with the PetroSaudi Chairman, Prince Turki bin Abdullah bin Abdulaziz Al Saud) met with President Fernando Lugo, the Minister of Foreign
Affairs, Alejandro Hamed Franco, and Minister of Finance, Dionisio Borda, to discuss ongoing and future investments in hydrocarbon
exploration in Paraguay. 

    They also discussed extending and improving the relationship between the Kingdom of Saudi Arabia and the Republic of Paraguay, in the
form of bilateral trade, and increased export.  Following the meeting at the Presidential Palace, the PetroSaudi and CDS delegation met with
the Minister of Public Works and Communications, Efrain Alegre, to explain the multi well drilling programme to be implemented in 2009.

    Further meetings with the Minister of Justice and Labor, Blas Llano, and the Minister of Industry and Commerce, Martin Heisecke, were
also held.

    To date CDS has invested more than USD 30 million in Paraguay and anticipates investing a further USD 18 million, on an upcoming
drilling programme. The drilling programme is subject to the completion of exploration and development work. As set out in the Company's
interim results the initial exploration programme for 2007/2008 is now physically completed.  Interpretation of the geochemical and seismic
data is in progress, with the final results expected shortly.  The results will enable the Company to select drilling targets in line with
its objective of starting drilling operations during the second quarter of 2009, after the end of the rainy season.

    PetroSaudi, through Patagonia Oil & Gas S.A., has built a major presence in Argentina reflected by a large number of concessions under
exploration all over the country, and, in Brazil, is actively negotiating access to promising acreages.  It is anticipated that next year
such developments will offer substantial synergies with the CDS operations in terms of cost sharings, training opportunities and
optimisation of equipment in the Brazil-Paraguay-Argentina regions.

    PetroSaudi Ltd Inc, an affiliate of PetroSaudi, owns a total of 62.8% of the issued share capital of CDS shares and is the controlling
shareholder.  PetroSaudi is a diversified private oil company operating across the globe through wholly owned subsidiaries in each
respective territory.

    For further information:

    CDS Oil & Gas Group Tel: [phone]
    Patrice Roman, Chief Executive Officer

    Hanson Westhouse Tel: [phone]
    Richard Baty

    Hudson Sandler Tel: [phone]
    Fran Read

    B4 Communication Tel: [phone]
    Claude Baumann / Fréric Jacquemoud


This information is provided by RNS
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