Eldorado Issues New Mexico Update
Eldorado Exploration said that its participation in the Mesa #1 well in New Mexico may develop into a total of 3 separate pay zones. Each potential oil or gas discovery could have many offset development wells due to the 11,300 acre lease position around the Mesa #1 well.
If a gas discovery is commercial, there are 3 ways to generate income. The 1st would be to drill additional wells until reserves found warrant building a 20 mile gas line, which would take 2 to 3 years with permitting and construction. The 2nd option would be to use a portable gas turbine to generate electricity for sale to an intrastate power line less than 5 miles away. The loss of energy in the conversion is more than made up because of a higher price for electricity. The 3rd option would be to compress and liquify natural gas onsite and truck to a pipeline or end user. The income from the selling of electricity, liquid natural gas, or oil could start in a matter of months. The Mesa well should be tested and final results known in the 1st Quarter, 2007. Eldorado has a 33% working interest in the Mesa Project.
The next area to drill is the 14,000 acre Taiban Prospect located west of the Mesa project and has similar PIP readings. The target date for drilling the Taiban well is mid 2007.
Eldorado Exploration, Inc. is an independent oil and gas company that utilizes a process called Passive Induced Polarization 'PIP' to detect electrostatic signals given off of some geological anomalies.
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