PAII has the right to acquire up to 40% of the Medjerda Block in Northern Tunisia by committing approximately $4,000,000 to fund a work program which includes the drilling of one well. The company has until April 30, 2005 to sign a farm-in agreement and until June 30, 2005 to reach a transfer agreement and joint operating agreement. Company officials will be in Tunisia this month to review data and continue meetings with Carthago. The permit covers an area of 4956 km(2) (1.225 million acres). Carthago has identified several prospects and play types with p50 reserves of about 300 mmbo (million barrels of oil).
PAII has just recently announced that the company has signed a participation agreement to participate in a gas project located in Alberta, Canada. Patch has acquired a 25% working interest in this project. Drilling operations on this prospect are expected to commence within three weeks. This major new prospect is located in the producing Bear Canyon region of Northeast Alberta. The total potential of the project is 12 Bcf (Billion cubic feet of gas). The project consists of one initial well, with the potential to drill multiple wells if the first well is successful. The operator has identified three primary targets. The formation of primary interest on this property is the Bluesky at a depth of approximately 1050 meters with reserve estimates of 4-6 Bcf, 2 to 4 Bcf and 1-3 Bcf respectively. An analogy pool within proximity at Balsom has been mapped that has produced 5 Bcf. Additional potential downhole zones exist which could substantially increase reserves.
Additionally, PAII will continue to meet other companies in Libya and Algeria to ensure Patch shareholders will be will be involved in a world class oil and gas opportunity. Patch President David Stadnyk states "The company is committed to find large world class exploration and development situations for our shareholders. We continue to move forward with Sonatrac in Algeria and now having this potential with Carthago Oil Company Tunisia, we feel the company is moving in a very positive direction. With oil and gas prices at near all-time highs and the drilling on our new Alberta prospect about to start, we are very enthused about the near and long-term prospects for PAII growth."
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