The project being negotiated to participate in is referred to as the "Kobzivske" project located in Eastern Ukraine. The project will consist of 12 wells and over 59,000 meters of drilling with gas reserve estimates at over 2.5 trillion cubic feet. Patch will now review the data available in more detail to assess the economic viability of the project and the companies' ability to participate in a project of this magnitude. Additionally, Patch intends to seek financial partners to participate if and when this project moves forward. Due to these enormous opportunities presented to Patch Energy by the situations in the Ukraine, the company has had numerous inquiries about participating with us, of whom include; Fairchild International Corp., Butler Developments and one other TSX venture exchange company. Patch will actively be seeking partners as the project develops but will remain as the operator.
The company feels the timing of a potential entry into the Ukrainian market is opportune as Hunt Oil of the United States in November signed a major deal with NAFTOGAZ and is the first foreign major company to enter the Ukrainian market place.
Patch also reports that the company has met with several local Ukrainian businesses in regards to a potential partnership and has held initial meetings with PricewaterhouseCoopers regarding legal, accounting and project management. Praxis/Patch will distribute news on a timely basis as events occur.
As previously disclosed, Praxis proposes to merge with Patch and anticipates this transaction on closing early in 2004.
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