First Calgary Petroleums will award one of four contractors the job of building gas and liquids plant infrastructure for its giant Menzel Ledjmet East field in Algeria by mid-summer 2008, although minority shareholders hungry for earnings in lean times have asked for the removal of a key director.

With no other projects save their world-class Algerian developments, First Calgary management have had to put down calls for the removal of a man key to the Algerian undertaking.

Company shares fell seven percent in London on the news.

Company chief exec Richard Anderson asked shareholders to vote down the minority shareholders, saying all was progressing as planned, with the promise of massive production volumes in the second half of 2010.

“I believe that actions by the dissident shareholders pose a significant threat to realizing that promise,” Anderson said in remarks to shareholders, before announcing company 2007 losses had been cut by 20 percent year-on-year to some $11 million.

'We believe we are 30 months from production of reserves from Block 405b … This represents a very significant achievement for the Company and its shareholders,” Anderson said.

Company planners have worked for six years and raised hundreds of millions of dollars to finance the MLE field and the expansion of a 273,000-acre license into new developments over its border.

Exploration and finance success has bolstered First’s shareprice despite a complete lack of sales and affirmed the immense experience of the company’s staff.

Citibank, JPMorgan Cazenove and Canaccord Adams are advising management as they strive to meet remaining captial costs. First Calgary is responsible for some 75 percent of the $1.3-billion development, which includes plant and pipelines.

The front-end engineering was completed without taking out a loan despite the collateral represented by sitting on top of 14 percent of world gas reserves.

The company said Thursday that a Phase 2 project -- after the 260 million cubic feet per day of MLE -- would be the TAGI oil pool and its associate hydrocarbons. Phase 3 would bring in area satellites.

Two other projects, CAFC and ZER, are aimed at devlepment drilling of known resources, with plans for development to be examined by Algerian authorities this summer.

Tags: First Calgary Petroleums, Sonatrach