News out!
Essex acquires interest in Santa Catalina (Algeria) Ltd.
Essex Resource Corporation ESX
Shares issued 25,569,667 Oct 27 close $0.62
Wed 27 Oct 99 News Release
Mr. Ian Rozier reports
The company has entered into an agreement to acquire 20 per cent of the
share capital of Santa Catalina (Algeria) Ltd., a. wholly owned subsidiary
of Santa Catalina Mining Corp.
Santa Catalina (Algeria) Ltd. is the owner of all of the shares of Santa
Catalina L.H. Lundin (Algeria) Ltd., which has recently entered into an
agreement to acquire a 25-per-cent participating interest in the Hassi Bit
Rekaiz oil concession onshore Algeria from ARCO Ghadames Inc. The other
participants in the concession are ARCO (50 per cent, operator) and Turkish
Petroleum (25 per cent).
The Hassi Dir Rekaiz oil concession covers 788,000 acres in the norther
portion of the prolific Ghadames basin in Norther Algeria, where major oil
reserves in excess of four billion barrels have recently been discovered by
Agip, Burlington, Cepsa, BHP and also Anadarko, whose El Merk North
discovery is reported to contain over one billion barrels of oil in place.
The flow rate on their discovery well was in excess of 21,000 barrels per
day.
ARCO is the operator of the Hassi Bir Rekaiz block and has previously
acquired extensive seismic coverage and drilled two wells, one of which was
a discovery flowing in excess of 1,800 barrels per day. The next well to be
drilled, Semhari East No. 1, will be drilled 10 kilometres updip from this
discovery, testing a large structure, and is expected to spud by the end of
November. Estimated target depth is between 3,600 to 3,800 metres and will
take approximately 90 days to drill. A second well, Sahara Mehadjer No. 1,
will follow.
Algeria is an OPEC member country and currently produces approximately 1.4
million barrels per day of light, high quality crude oil. Excellent
infrastructure is in place including excess pipeline capacity within 65
kilometres. Several major nearby development projects are under way.
Essex is very pleased to be involved in Hassi Bir Rekaiz, a very
high-profile oil exploration project with world renowned operators and
partners. Essex has over $5-million in working capital and is able to meet
its commitments without the need for further financing. Essex is currently
negotiating to acquire interests in other oil and gas projects.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
