Stealth Acquiring Additional Nova Scotia CBM Interests
|Friday, February 04, 2005
Stealth Ventures has reached an agreement, subject to formal documentation and regulatory approval, to acquire additional interests in the leasehold rights and assets of the Stellarton Basin and Cumberland Basin CBM projects in Nova Scotia.
In addition to its earned 50% interest in the Stellarton Basin project, Stealth is acquiring the remaining 50% interest, resulting in Stealth's ownership of a 100% interest and operatorship of the Stellarton Basin project. The 50% interest in the Cumberland Basin project being acquired by Stealth is in addition to Stealth's previously announced farm-in option. If Stealth earns an interest through exercise of its Cumberland farm-in option, Stealth would own a 75% interest and operatorship of the Cumberland Basin project.
The Stellarton Basin project covers the Stellarton Sub-basin, which has been estimated to contain in excess of 500 billion cubic feet of in-place gas in its coal seams (generally 500 to 4,000 feet below ground surface). The Stellarton CBM license is comprised of approximately 24,000 acres. There are 20 named coal seams with individual seam thicknesses that range from 3 feet to 46 feet, and total net coal thickness of up to 300 feet. Coal ranks range from high volatile A to medium volatile bituminous, with measured gas contents ranging from 100 to 330 scf/ton.
The Cumberland Basin project covers the Cumberland Sub-basin, which has been estimated to contain in excess of 1.0 trillion cubic feet of in-place gas in its coal seams (generally 2,000 to 8,000 feet below ground surface). The Cumberland CBM license is comprised of 177,000 acres. Total net coal thicknesses are up to 90 feet. Coal ranks range from high volatile A to low volatile bituminous, with measured gas contents ranging from 100 to 510 scf/ton.
The Cumberland license area is approximately 80 miles west of the Stellarton license area. Both projects are in close proximity to the Maritimes & Northeast pipeline and both are expected to have future access to low-pressure gas infrastructures.
To effectively manage these additional operating responsibilities, Stealth will be adding a position of Vice President Operations.