Basic Earth Suspends Operations on Canadian Exploration Well

Basic Earth reported that Legent Resources Corporation, its wholly-owned Canadian subsidiary, has suspended drilling operations on its Silver Spike prospect in Alberta, Canada. The Westerose 6-6-46-1W5, operated by Zinke & Trumbo Canada Corp., was drilled to 2,486 meters (8,100 feet). While Legent did not encounter a Devonian LeDuc reef, the Company is evaluating other alternatives that may be available to it and its partners. Legent has a 7.8125 percent interest in the well and spent approximately CDN $71,000 on prospect, acreage, and licensing costs and approximately CDN $85,000 on drilling. Legent funded the drilling cost with existing Canadian funds which were generated by the previously disclosed sale of producing properties to Crescent Point Energy, Ltd.

"While indeed this is a disappointment, the compelling nature of this geologic anomaly required exploration," said Ray Singleton, president of Basic. "For a relatively small investment, if successful, the rewards would have been immense."