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Golden Arch Resources Ltd. Corporate Update
VANCOUVER, BRITISH COLUMBIA--Golden Arch Resources Ltd. (GAI-VSE) is please to announce that is has reached a firm agreement with Commonwealth Energy Corp. (CWY-ASE) of Calgary, Alberta to acquire a 25% working interest in a 3,000 acre prospect with a planned multi well development program, located in Parker County, Texas, and a 10 percent working interest in a 3,000 acre prospect with a planned multi well development program, located in Coleman County, Texas. The cost to Golden Arch for the two separate working interests, including drilling, completion, and recompletion costs, is approximately $200,000 USD. Golden Arch will receive its share of production from 6 currently productive wells producing in excess of 600,000 cubic feet of natural gas per day from the Parker County prospect. Additionally, production will be received by Golden Arch from one recently recompleted well on the Parker County prospect, and one recently completed well located on the Coleman County prospect, which will be tested beginning August 4, 1999.
In addition to the six current producers and two recent completions, a total of three additional wells are scheduled to be recompleted by the end of August 1999. The recompletion program on the Parker County prospect has the potential to increase production from current levels of 600,000 cubic feet of natural gas to a range between 1.3 & 2.9 MMCF per day. Golden Arch has a net revenue interest of 20 percent in the Parker County project and a 7.3 percent net revenue interest in the Coleman County project. In total, up to forty development wells are planned on the 6,000 gross leasehold acres, in the two areas.
To finance the subject natural gas properties, the Company has arranged bridge financing with D.R. McKay & Associates of London, England and is in the process of arranging a long-term convertible debt issue, the terms of which will be announced when arrangements are finalized. The financing agreement referenced in the Company's news release of June 14, 1999 has been canceled, pending further corporate developments.
On behalf of the Board of Directors of Golden Arch Resources Ltd.
Richard J. Watson, Director
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FOR FURTHER INFORMATION PLEASE CONTACT:
Golden Arch Resources Ltd.
Richard J. Watson
Director
(604) 266-9910 or 1-800-661-0091
(604) 266-5000 (FAX)
E-mail: safeenv@direct.ca
The Vancouver Stock Exchange assumes no responsibility for the accuracy of this Release and neither approves nor disapproves thereof.
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