Shamrock arranges private placement
Shamrock Resources Inc SHJ
Shares issued 11,061,200 Jul 23 close $0.33
Mon 26 Jul 99 News Release
Mr. Robert Brady reports
The company has arranged for a private placement with Albatross Oil & Gas
Company, for up to 5.4 million special warrants at 25 cents per special
warrant. Each special warrant is convertible into a unit, each unit
consisting of one common share and one share purchase warrant entitling the
purchaser to acquire a further common share for a period of two years at a
price of 25 cents in the first year and 30 cents in the second year. The
proceeds of the private placement will be used to develop Shamrock's oil
and gas prospects in California, including the drilling of its East
Crenshaw prospect appraisal well, in Inglewood in the Los Angeles basin.
The private placement is subject to Vancouver Stock Exchange approval.
In addition, Shamrock announces that it has entered into a right of first
refusal agreement with Albatross to participate in or acquire an interest
in Albatross's California-based oil and gas prospects in the Lost Hills
field, San Joaquin basin, and the Oro Fino field, Salinas basin.
The Lost Hills shallow and medium depth project, which has production of
125 barrels of oil a day, has established producing and undeveloped
reserves with net pays ranging from 20 to 50 feet. Albatross has a
45-per-cent working interest in the project and drilling of up to six
horizontal oil wells will commence on or about July 27, 1999.
Albatross has an 80-per-cent working interest in the Lost Hills Temblor
prospect, which is targeting the same Miocene Temblor sands reservoir as
that in the Bellevue No. 1 well. This prospect is approximately two miles
to the west of the Bellevue No. 1 well, in the hangingwall anticline
structure, which is part of the Lost Hills oil field. The Bellevue No. 1
well blew out and ignited in November, 1998, while encountering an
uncontrollable high-pressure gas zone during drilling. The well flowed
uncontrolled for two weeks at an average estimated gas rate of 100 million
cubic feet a day and flowed at approximately 10 million cubic feet a day of
gas and 400 barrels of condensate a day under restricted flow until it was
plugged on May 28, 1999.
In addition to the Temblor sands, which is at a depth of approximately
5,500 feet with a net pay estimated at 315 feet, deeper targets down to
8,000 feet include the Belridge 64 and the Point of Rocks Sands with
estimated net pays of 400 and 595 feet.
Albatross's Oro Fino project, with a 40-per-cent working interest, contains
three prospects in a 5,00-acre lease block. The prospects range from
appraisal to exploration wells targeting the Miocene Vaqueros sands with
between 100 and 200 feet of prospective pay.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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