Fairchild Acquires Stake in Several Projects in Montana
Fairchild International will acquire the entire interest in what is known as the Atlantis project as well as the North Gildford Sawtooth project, in Hill county, Montana, from Hathor Exploration Ltd. Hathor had originally acquired these rights, pursuant to a farm-in agreement, from Griffon Petroleum Inc., a U.S. based private company.
The Atlantis project comprises some 95,000 acres in Montana, in which Fairchild will have a 100% working interest before payout and a 50% working interest after payout. Geophysical data support a broad and regional gas play in several cretaceous zones, including the Jurassic Sawtooth as well as the Eagle formations, the latter being similar to the prolific Milk river and Medicine Hat formations located north of the border in Canada. Drilling costs are anticipated to be roughly $75,000 per well. Closing is expected to take place by the middle of June with additional information regarding the agreement being made available at that time.
The purchase price is eight million restricted shares of Fairchild, with completion of the transaction subject to, among other things, a renegotiation of certain terms and conditions with respect to the projects, satisfactory to Fairchild International and all requisite regulatory approvals. Closing is anticipated to take place by the middle of June, 2003. In management's opinion the acquisition and the development of a project of this nature and scope will significantly enhance shareholder value. Drilling of the first well is slated to begin by mid June.
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