Eldorado Announces Joint Venture

Eldorado Exploration has entered into a joint venture with a private capital group to fund the drilling of the company's Mesa gas prospect in Roosevelt County, N.M.

The investors will earn one-half of Eldorado's 75 percent working interest for funding the drilling cost of the first well on the 11,000-plus acres currently leased. After a discovery, Eldorado says that it will pay its percentage share on any future wells drilled.

The Mesa prospect was originally identified by a process called Passive Induced Polarization (PIP) which Eldorado president David T. Laurance has been using since 1992. The company contends that geological studies on wells drilled in the Mesa area, which include seismic indications, have outlined a structure with the potential to recover up to 1 trillion cubic feet of natural gas. A discovery reportedly could indicate future revenues of approximately $2 billion to Eldorado's net interest under the current leased oil and gas rights. An additional 20,000 acres will be sought immediately following a successful well.