Patch Acquires Stake in Three Prospects in Alberta
Patch International has entered into an agreement to participate in three oil and gas prospects that are located in the Elnora/Mikwan region, the Lloydminster area and in the Atlee-Buffalo area of Alberta, Canada. PTII has partnered with two private companies and has obtained a 50% working interest in these potential multi-well prospects. Drilling on all three prospects is expected to commence before December 31, 2005. Estimated reserves for the three prospects are in excess of 500,000 bbls of oil. The operator is currently finalizing the drilling plans for the coming month and PTII will update shareholders as soon as the details are available.
PTII currently has cash reserves that it intends to utilize to build its assets through acquisitions and additional drilling. Commenting on the news, David Stadnyk, PTII President & CEO said, "PTII has begun the process of selling up to 35% of its 11.2 million shares in Pharmaxis and moving forward, PTII intends to continue to use a portion of its growing company treasury to participate in more substantial oil and gas projects. Over the next 18 months PTII's goal is to become a 1000 bbls of oil/day producer and I am confident that today's announcement will help us reach that goal."
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.