Emvelco in Negotiations to Buy Drilling Rights in Texas

LOS ANGELES--(Business Wire)--
Emvelco Corp. (NASDAQ:EMVL) disclosed this week that it has
entered into the final stages of negotiation on a term sheet to
purchase and receive from an entity that owns certain gas development
rights, all the mineral acreage and land rights for drilling on
property located in Texas.

The Company said in a document filed with the Securities and
Exchange Commission that the purchase price will be $50 million as the
first increment which may be increased up to $250 million based on
actual proven developed production. In consideration of the actual
assignment of the gas lease rights, Emvelco said it will issue a
minimum of 50 million new shares to the seller. The share price will
be at an agreed upon price of $1 a share in exchange for all the
shares of the entity that may be transferring the gas lease rights.

The Company is undertaking due diligence and upon proof of good
title to the gas lease rights, the transaction will be presented to
the board of directors for approval, according to the filing.

This press release contains forward-looking statements that
involve risks and uncertainties. The statements in this release are
forward-looking statements that are made pursuant to safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
Actual results, events and performance could vary materially from
those contemplated by these forward-looking statements. These
statements involve known and unknown risks and uncertainties, which
may cause Emvelco Corp.'s actual results in future periods to differ
materially from results expressed or implied by forward-looking
statements. These risks and uncertainties include, among other things,
product demand and market competition. You should independently
investigate and fully understand all risks before making investment
decisions.

Emvelco Corp.
Robin Ann Gorelick, 310-860-5644

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