Patch Sets Spud Date on Second McLeod Prospect in Alberta
Patch International Inc. reports that the operator has informed PTII that a drill rig is available and the spud date has been set for the week of Monday, December 5, 2005 to drill the second McLeod well (9-20) adjacent to the successful Mcleod 2-20 well that is now producing oil. Drilling of the McLeod (9-20) is expected to last several days with initial results expected shortly thereafter.
As previously announced Patch has earned in to participate in the second drill program on the adjacent property to their producing McLeod 10-20 oil well as a result of participation in the first McLeod well. The operator plans to spud the new well (9-20) at the McLeod project to test the Middle Ellerslie and Basal Belly River zones encountered in the McLeod 2-20 well. The operator is very optimistic that the 10-20 well is anticipated to encounter the optimum Middle Ellerslie beach reservoir and that it could also extend the Basal Belly River channel reservoir from the 2-20 well.
Commenting on the news, David Stadnyk, PTII President & CEO said, "With the success from the first McLeod well we are confident that the second well will result in continued growth to our monthly revenues. We anticipate that the second well will result in both oil and gas production. Further, PTII has begun the process of selling up to 35% of its 11.2 million shares in Pharmaxis and moving forward, PTII intends to use a portion of its growing company treasury to participate in more substantial oil and gas projects."
About Patch International
PTII is a junior oil and gas producer that currently earns oil revenue
from 19 oil wells. These wells provide the company with short-term and long-
term cash flow. This cash flow is expected to increase in the very near future
because the McLeod 10-20 well is now in full production. PTII has properties
in North America, and is exploring opportunities in North Africa, South
America, and Ukraine. PTII has begun a program to sell up to 3,920,000 (35%)
of its 11.2 million shares investment in Pharmaxis (Australian Stock Exchange:
PXS, NASDAQ NM: PXSL). 5.6 million shares of its Pharmaxis shares or the net
proceeds of the sale of those shares, both after taxes and costs, have been
declared as a dividend to shareholders of record as at July 30, 2004, subject
to regulatory approval.