DIGG - MARCH 2, 2001 - 20:50 EST
Digital Gas Sub Acquires Exclusive Rights in China For
Breakthrough '4D' Oil & Gas Field Imaging Technology
CALGARY, ALBERTA--Digital Gas, Inc. (DIGG - Pink Sheets) today
announced that it's wholly-owned subsidiary, Qingdao Technology
Co. Ltd. of Calgary, Alberta, has signed an exclusive agreement to
utilize the breakthrough oil & gas field imaging technology of
Synthetic Aperture Imaging Technologies, Inc. ("Saitech") of
Calgary, Alberta.
Saitech, a high technology application specific supercomputing
company, will be implementing the current state of the art in
applied supercomputing and its application to the prediction of
rock properties for Digital's Qingdao Technology and its partners
in China after preliminary fieldwork resumes later this month.
Saitech describes the technology that will be used in China for
Qingdao Technology and its strategic partner, Dongsheng
Corporation, as "4D". It will represent the state of the art in
seismic analysis and will result, according to Saitech CEO Tim
Davies, in there being "no data set of comparable quality to Dong
Sheng's anywhere on earth today."
"One of the three largest companies in Canada has already used an
early version of the technology with unqualified success to more
than double the recoverable frequency of their existing seismic",
added Davies, who has used the technology in his own drilling
company and is 13 for 13 in predicting the presence of the target
zone and the limits to the zone of interest.
Qingdao Tcchnology is a newly formed Alberta corporation that will
conduct the oil & gas business of Digital Gas in China, including
the Dongsheng contract. Deloitte & Touche LLP of Calgary, Alberta
was approached by Digital in this matter and has offered to assist
the new company in the preparation of a formal business plan,
which will be used later this month as the new company plans to
raise money for its China business in Hong Kong. The company is
seeking up to US$25 million through a private placement of common
shares. Deloitte would also offer financial and income tax advice
and consulting services with respect to the financial activities
of the new company, 100% of the shares of which will be
distributed to Digital shareholders after Deloitte analyzes the
new corporate structure and advises on specific financial
transactions that Qingdao Technology may wish to enter into.
Digital has decided to accept the offer, subject to the working
out to its satisfaction the details of a services contract. Once
Qingdao Technology is financed, it will apply for listing on the
Toronto Stock Exchange in Canada and to a senior exchange in the
US market.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Digital Gas, Inc.
Brian Smith
(732) 449-9784 |
