DMT Energy Purchases Stake in Canadian Prospects
|Friday, December 05, 2003
DMT Energy will purchase interests in highly promising gas prospects in Alberta continuing it's development program to invest in low-risk, high-revenue gas producing leases. Fred DaSilva, DMT CEO announced, "We expect that our strategic alliances with Princess, Avenger, Eastland and Endless will lead to shared successes in additional gas wells in Alberta and British Columbia. We are partnering with expert drilling companies, with top petroleum geologists and geophysicists. Combined with the expertise of our head of exploration, Don Hryhor, we have created impressive technical teams and expect ongoing success in bringing our prospects to fruition."
"We expect to provide an excellent revenue stream from these prospects for our company and it's shareholders, along with our drilling partners. We intend to continue to seek out low-risk, high-revenue potential leases. Our business model provides us with spread risk through multiple opportunities in our goal to build a significant independent oil exploration and production company,'' continued DaSilva.
DMT partnered with Princess Land Holdings Ltd. of Calgary to acquire a 30% Working Interest in three Cretaceous shallow gas prospects previously acquired by Princess and located at Acheson, Alexander and Sunken Lake, Alberta.
These prospects developed from extensive seismic studies and research conducted by the well-known veteran geophysicist William M. Oakley, P.Geoph. Oakley's extensive experience with the Cretaceous geology and geophysics in the subject area resulted in the discovery of numerous nearby fields during his career. Princess Land Holdings is operated by the prominent geophysicist Joseph Sefel (principal founder of Sefel, J. and Associates)
DMT also partnered with Avenger Petroleum Inc. of Calgary to participate in an exciting well re-entry program in Northeast British Columbia. Existing roads, flow lines, facilities and boreholes enhance the economic viability of the prospect, which focuses on the Middle Devonian Slave Point and Keg River formations, known to be extremely prolific producers. Avenger's technical team includes several highly skilled and experienced industry professionals.
Total costs for DMT's participation in the Avenger program are anticipated to be in the order of $300,000 and payout is expected within 3-4 months from drilling and completion. Further, a Keg River discovery in the Avenger Prospect would result in a multi-million dollar windfall for the Company.
DMT partnered with Eastland Exploration JV of Calgary, Alberta to re-enter two wells in the Wainwright area of Alberta. The re-entries are targeted at the Rex Sand formation. Indications of gas and good porosity appear on the well logs. Under the terms of the Agreement DMT will pay 71.07% or re-completion costs in the two wells to earn a 21.07% Working Interest. Estimated costs are in the order of $120,000 and payout is expected within 3 months of re-entry.
DMT also partnered with Endless Energy Inc. (v.EEC) of Calgary in its Acadia, Alberta project and struck gas on Dec 3, 2003. Under the agreement, DMT pays 50% of drilling and completion costs to earn a 37.5% Working Interest. Acadia is a shallow depth Cretaceous gas prospect targeted primarily at the Viking/Bow Island formation. Total costs for DMT's participation are estimated to be in the order of $150,000 and payout is expected within 4-6 months from drilling and completion.