K2 Energy Acquires Acreage from Blackfeet Nation
K2 Energy has entered into an agreement with the Blackfeet Tribal Business Council amending its existing Indian Mineral Development Agreement ("IMDA"). By this amendment, K2 has acquired the rights to an additional 100,000 tribal mineral acres with consent to lease an additional 100,000 acres of "allottee" and "fee" lands within a designated 200,000 acre block on the Blackfeet Reservation in northern Montana. This amendment is subject to approval by the Bureau of Indian Affairs. Upon its approval, K2 will have increased its rights on the Reservation to approximately 550,000 acres of exploration and development lands.
The Company will deposit the land bonus payment of $1,000,000 US with the Bureau of Indian Affairs pending their approval of the amended agreement.
Mr. Geoff Fulton, K2 Energy Corp.'s Chairman stated "the signing of this agreement is a major milestone for the new management team and demonstrates convincingly their ability to work in partnership with the Blackfeet Nation."
The addition of the new acreage increases the Company's Bow Island
natural gas development prospect on the eastern edge of the Reservation to
approximately 200,000 acres. The Company remains on schedule for its fracture
stimulation program of recently drilled Bow Island wells in early first
quarter 2003 with completion of its pipeline and commencement of production
expected by March/April 2003.