With oil at a current price of US$107 pb, Les Kjosness, Golden Arch president, announced the joint venture financing in the amount of $1,025,000 to finance the first two wells at our Antelope North oil prospect in Clay County, Texas has been completed.
Golden Arch Resources Ltd. and it's wholly owned subsidiary, Golden Arch Oil & Gas Inc., have completed a financing with investors to drill these wells. Golden Arch Oil & Gas will retain a 12.5% carried interest to the completion of the two wells and Golden Arch Resources Ltd. has acquired 9.25% working interest. Both entities will have a working interest for their respective percentages on all future wells to be drilled on the property.
In June 2006, Golden Arch acquired an 82.5% Net Revenue Interest in an approximate 235-hectare (583 acres) series of leases located in Clay County, Texas, known as the Antelope North. The prospect is located in an established, multi-pay region of northern Texas, geographically southeast of Wichita Falls. This prospect area is known for its shallow, prolific oil production dating from 1940 when Shell Oil Company discovered the Antelope Field, 2.5 miles south of this prospect.
Recently, 2.5 miles north of this prospect, EOG Resources, Inc. has discovered oil productive Barnett Shale at 5,800ft. and has initiated drilling of another well less than 6,000 feet north of Golden Arch's locations. EOG is still delineating its oil discovery but has announced estimated possible crude oil reserve potential at 225-460 million boe net on its 250,000 net acres (900-1,850 (BO/acre)) in Montague, Clay, and Archer counties. With success of EOG's offset, Golden Arch has reason to expect their leases will enjoy the same Barnett Oil reserves under their 583 acres of leases as well.
Results from the initial drilling should be available within two months.
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