Another news release on AOW and UP
August 27, 1999
Trading Symbol: V.AOW
Arrowhead Renegotiates Arrangement with Ultra
Arrowhead Minerals Corp. through its subsidiary Arrowhead Resources (USA) Ltd. and Ultra Petroleum Corp. through its subsidiary Ultra Petroleum (USA) Inc. have renegotiated their joint venture in the Green River Basin to clarify certain previously disputed points. Under a binding letter of intent signed today by both parties and approved by the Board of Arrowhead, the following points were clarified:
Referring to the October 30, 1998 Second Amendment to Letter Agreement dated August 19, 1997, it is now explicitly agreed by both parties that as of October 27, 1998 there was zero balance between the two companies.
Ultra shall make all reasonable efforts to offer Arrowhead the opportunity to administer and operate a portion of the lands in the Warbonnet and Bull Draw Areas through checkerboarding the acreage within those prospects or some similar alternative to accomplish the same goal.
At the Gemini Prospect, Arrowhead can earn the same net acreage position (3,027.45 net acres), but by earning a smaller interest in a larger land position. Previously, Arrowhead was earning 42.5% of 7,123.42 gross acres. Arrowhead can now earn 23.12% of a gross 13,096 acres. It is agreed that Ultra will provide an AFE for drilling a Gemini test well to Arrowhead by no later than the close of business September 15, 1999 and that on or before September 30, 1999, Arrowhead shall advance 42.5% of the AFE'd funds. This will complete the earn-in requirements.
This agreement is subject to the review of the Vancouver Stock Exchange.
On behalf of the Board,
Arrowhead Minerals Corp., |
