Redcliffe Exploration Inc. announced the raising of US $6,000,000 from a group of United States based investors through Redcliffe Land Fund LLC. This capital, in addition to current cash flow and credit lines, will enable Redcliffe to continue its focus of developing high-quality, high-impact gas and oil drilling prospects in the dynamic Gold Creek/Wapiti areas of the Peace River Arch.
Currently, Redcliffe has over 35,000 gross acres of undeveloped lands in this highly prospective and competitive basin. Over the last 18 months Redcliffe has participated in the successful drilling of seven gas discoveries, one oil discovery and one dry hole. Currently, three additional wells are scheduled to be drilled prior to year-end in this area.
Under the terms of the Redcliffe Land Fund Agreement (RLFA), Redcliffe has sold a 66.67% working interest in certain lands that were acquired over the past 2.5 years in the Gold Creek/Wapiti areas of the Peace River Arch. RLFA will also finance 66.67% of certain future land purchases in this area to the end of 2008. Redcliffe in turn will have the obligation to drill, or cause to be drilled, six wells over the next 36 months to earn back 80% of the interest in these lands after payout of all capital costs. Redcliffe will maintain technical and operational control over these lands in regards to all drilling and operational issues. These interests will be held in trust for the investors.
This capital arrangement allows Redcliffe to participate in the very active Crown land sales centered around our Gold Creek/Wapiti properties in the second half of 2008. This year, as reported in our August 28, 2008 press release, Redcliffe has doubled its undeveloped land base in this core property. Recent land sale activity in this area has been highlighted in the press after the September 3rd Alberta land sale results were announced and this area has remained one of the most active drilling basins in Alberta through 2007 and 2008.
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