Uranium Power Corporation reports that the current drill program on its Athabasca Oil Prospect has encountered oil & gas shows at 1654 meters (5425 ft). The Company encountered oil and gas while preparing to initiate its core sampling from the 1654-meter level. The coring operation is expected to be concluded today and following analysis the Company may elect to immediately perform a production test over the cored interval. Uranium Power Corporation intends to continue its drilling program immediately after completing the core procedure. Stated Company President Doug Cannaday "We are highly encouraged by the oil & gas shows encountered on our deep drilling program and believe these showings strongly support our belief a major oil resource exists at depth." Deeper drilling operations may intersect further facture zones containing additional oil and gas shows prior to reaching the primary seismic target.
The Company is also pleased to report that PNG Ventures has replaced Patriot Energy Corporation as previously announced on November 14, 2002. PNG Ventures will earn a 12.5% working interest before payout reverting to a 9.375% working interest after payout on the 7-32 well and also has the right to drill further wells on the Athabasca and Firebag Prospects and participate within an area of mutual interest.
In the 7-32 well the Company now holds an 87.5% interest before payout and a 61.3125% working interest after payout.