MORE NEWS ON LMX:
March 25, 1997
News Release #33
LMX RESOURCES LTD.
The Company announced on February 26, 1997 that it had agreed to acquire interests in two oil prospects in Newfoundland. The Company has now decided to double its interestsin two oil prospects. As a result the Company will be acquiring the following:
1. 25% working interest in 3 permits in the Deer Lake Basin, covering 78,750 hectares (194,591.2 acres) by completing 34 km. of seismic and by drilling a first well to 3,500 feet to be spudded by May 15, 1997 and a second well to a depth of 6,000 feet by expending up to $865,000.
2. Exploration License EL 1008, the St. George's Bay License, covering 178,460 hectares (440,975 acres): a 10% working interest in Block A covering approximately 60,000 hectares convertible to a 2.2% gross over-riding royalty; and a 45% working interest in Block B covering approximately 120,000 hectares. The Company must expend $1 million on exploration including the drilling and evaluation of a 8,000 foot well on Block A by September 30, 1997.
The Company is required to advance $865,000 for rentals. The total cost of the rentals,exploration and drilling program for the two plays, is estimated to be a max of $2.7million.
A finder's fee will be paid according to VSE policy of up to $167,500 and will be calculated according to actual expenditures to complete the drilling program. The finder's fee shall be paid in treasury shares of LMX issued at a price equal to $1.30 per share.
The closing price of the Company's shares the preceding trading day was $1.30.
On behalf of the Board:
LMX RESOURCES LTD.
itribe.net |
