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NEWS RELEASE
AUGUST 11, 1998
[LOGO]
410 17th Street, Suite 700
Denver, CO 80202
(303) 893-0102
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Inland Resources Announces The Utah Project
ENHANCED OIL FIELD RECOVERY AND ASSOCIATED FACILITIES TO GENERATE MORE THAN
250 JOBS IN NORTHEASTERN UTAH
DENVER, CO - INLAND RESOURCES INC. (NASDAQ SMALL CAP - INLN) In response
to the overwhelming success of new waterflooding technologies pioneered by
Inland Resources in a US Department of Energy (DOE) demonstration project
administered by the University of Utah, plans for a significant expansion of
activity associated with the Monument Butte oil and gas field were announced
today by the field's primary developer, Inland Resources.
In addition to increased drilling activity and oil production, Inland's
President, Kyle Miller, said the company plans to reopen the existing
Pennzoil refinery in Roosevelt and construct a new pipeline to avoid more
than 38,000 truck trips annually through the Parley's Summit area. The
refinery and pipeline also will help avoid the necessity for increased
refining in the critical Salt Lake Valley air basin and significantly improve
air quality and safety along transportation routes.
The project is called The Utah Project because it refines Utah oil in Utah to
meet the gasoline, diesel and jet fuel demands of Utahns. The motor fuels
produced by The Utah Project are environmentally desirable because they
contain no air pollution-causing sulfur, an advantage over even the strictest
California fuels. The crude oil, which is refined into this unique gasoline,
is produced from the Monument Butte field of the Uinta Basin in northeastern
Utah. Demand for the gasoline and diesel fuel to be produced by The Utah
Project has increased significantly in recent years and is expected to
increase additionally in the years before the 2002 Olympics. As importantly,
the jet fuel produced by the project is expected to help ease the significant
shortage that has caused the Salt Lake Valley to have among the highest jet
fuel costs in the national situation that almost invariably leads to higher
ticket prices for area consumers.
The Monument Butte oil recovery program led by Inland Resources has been so
economically successful that increased Federal royalties from the project may
be enough to pay for the entire DOE national oil field demonstration program.
The technology is critical to long-term recovery from northeast Utah fields,
and to maintaining and expanding the economic base of northeastern Utah.
FOR INVESTOR INFORMATION CONTACT:
INLAND RESOURCES, INC., 410 17TH ST., SUITE 700. DENVER, CO 80202
303/893-0102 FAX 303/893-0103
It is expected that at completion, The Utah Project will employ more than 250
people, mostly in the Roosevelt area.
"We are pleased to be an all-Utah project, providing a much cleaner motor
fuel to Utahns while keeping the jobs and tax base generated by this oil
production in Utah," said Kyle Miller.
Reconstruction of the Pennzoil refinery is expected to begin in early 1999,
while construction of the pipeline is expected to occur during the spring and
summer of 2000. Field production is already being increased and The Utah
Project is expected to be completed by 2001. Field production could continue
for as long as 40 years.
FOR INVESTOR INFORMATION CONTACT:
INLAND RESOURCES, INC., 410 17TH ST., SUITE 700. DENVER, CO 80202
303/893-0102 FAX 303/893-0103