Under the terms of an agreement with a major forest products company announced on August 17, 2005, Cascadia has completed its preliminary geological review of a 365,000 acre block in southwestern Washington and has selected 100,000 of the most prospective acres for continued exploratory evaluation. Cascadia also retains a two-year right of first refusal on the balance of this acreage.
Based upon the geological interpretation of this initial 100,000 acreage block and the surrounding area, Cascadia decided to aggressively pursue additional acreage at the November competitive lease auction held in Olympia, Washington. The approximate 15,000 acres that was acquired from the State of Washington Trust lies directly adjacent or contiguous to Cascadia's 100,000 acre block. The acreage for which Cascadia was the high bidder was part of an inventory of State managed mineral parcels which received a significantly higher level of industry attention than previous lease sales. These properties include potential for both natural gas from coal and conventional natural gas opportunities.
Cascadia and its 40% partner, St. Helens Energy LLC, are coordinating a plan with the following steps:
1. continued geological assessment of this area, including seismic and existing well data
2. selective land purchases and continued land title work
3. review of specific sites for an exploratory work program, which may include a core hole program and/or a pilot well program
Mr. Thomas Deacon, President of Cascadia, indicated, "The large Cedar Creek area reflects an opportunity to evaluate multiple, previously identified geologic leads and coal seams in a known coal-producing area of the Northwest which is very close to an existing interstate pipeline, gas storage fields and strong markets for natural gas."
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