Nevtah Capital Management Corp. and its joint venture partner, Black Sands Energy, announced the signing of an agreement with Enercor, Inc., a Los Angeles-based company, to acquire and develop numerous key oil sands leases situated in the Asphalt Ridge and P R Spring oil sands areas of Utah.
The multiple leases, originally held by Exxon Mobile in the mid-1980s, have a total of 1.4 billion barrels of proven resources and an additional 1.2 billion barrels of probable resources, and cover a total area of 26,066 acres. Under the Agreement, the mining rights include from the surface down to a depth of 200 feet. The development of the leases will be under the direction of a newly formed Nevada corporation. Black Sands Energy will own 33.33% of the common stock of the new company and will be responsible for the mining activities of the venture. Under the current joint venture agreement for the development of oil sand leases in Utah between Nevtah and Black Sands Energy, the two companies will share equally in the new venture's net profits.
Utah's Asphalt Ridge and P R Spring areas represent two of the state's four largest major oil sands deposits. The U.S. Department of Energy estimates that overall reserves in P R Spring area total more than 4.5 billion barrels of oil. Estimates of the Asphalt Ridge resource are more than 1.5 billion barrels. Both of these deposits lend themselves well to the joint venture partners' patented oil extraction technology: the resources tend to be close to surface; are fragmented by multiple beds and are highlighted by several rich zones.
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