Contact Exploration to Explore Onshore Nova Scotia Prospects
|Monday, March 17, 2003
Contact Exploration Inc. has formed a joint venture with an unnamed U.S. independent to further develop four exploration blocks onshore Nova Scotia. The blocks involved are referred to as the Antigonish, Bras d'Or, Sydney and Pictou blocks. These blocks encompass 1,521,489 acres. The U.S. independent has committed to drill a Windsor reef test on the Antigonish block to an approximate depth of 1,500 meters with an anticipated start date in the third quarter of 2003. And, has committed to conducting a minimum of 60 km of seismic and spending $450,000 for additional geological and geophysical work on the other three blocks. Contact will be carried for a 20% working interest in the drilling and completion of the Antigonish well and will also be carried for a 25% working interest in the seismic and other exploratory work. The U.S. independent will have the option to drill a well on each of the other blocks, at no cost to Contact, to earn a 75% interest in each block drilled. Contact plans to drill up to three wells on its East Coast onshore acreage during 2003.