DIGG, heck this is old news, but relevant today with what is going on with the China connections.
NEW YORK, Nov. 1 /PRNewswire/ -- Digital Gas (OTC Bulletin Board: DIGGE)
today announced that Qingdao Digital Gas Enhancement & Exploration Co. Ltd.
has been formed and formally registered as a sole foreign corporation in China for
the purpose of introducing Digital's state-of-the-art, leading-edge oil & gas field
reservoir enhancement & exploration technologies in China.
The agreement signed between Digital Gas and Taichang Company, Shengli
Oilfield this past September 30th will be transferred by the respective parties to
Qingdao Digital Gas and the Shengli Petroleum Association, which notified Digital
of their acceptance of the plan earlier today by letter.
The first area to be enhanced and explored by Qingdao Digital Gas Enhancement
& Exploration will be the Shengli Basin where Digital management conservatively
projects that on average it can enhance the production from existing wells by a
factor of 200-1000% their current levels.
The following description of the Shengli Oilfield has been reported to Digital during
its due diligence. It is the second largest oilfield in China. Located in the Yellow
River Delta area on the Bohai Sea in the northern part of China's Shandong
Province, the Shengli Oilfield overlaps with 28 counties and districts under the
jurisdiction of eight cities including, Dongying, Binzhou, Dezhou. Its main parts are
scattered on both sides of the Yellow River estuary within the jurisdiction of
Dongying. The Shengli Petroleum Administration is headquartered in Dongying
City.
The discovery of the oilfield was based on the earlier oil surveys conducted in
China's northern central region. The first successful drilling of industrial oil was
made on April 16, 1961 with the well-coded Hua-8, which led to the discovery of the
first oilfield in the basin of Bohai Bay known as Dongxin Oilfield. On September 23,
1962, the high-yield Ying-2 well was drilled on the Dongying Formation. On January
25, 1964, the Chinese Communist Party Central Committee authorized large-scale
oil surveys and development in this area.
Shengli has five depressions with a total area of 65,000 square kilometers. Current
development is mainly focused in the Jiyang Depression, with major production
fields concentrated within an area of 10,000 square kilometers in the eastern part.
Jiyang Depression is an oil/gas rich region with complicated geological features,
such as the large number of faults, great variety of rock formation and reservoir
types, and many differences in the physical features of reservoirs and qualities of
crude oil. To date, 17 types of reservoirs have been found, including, sandstone,
conglomeration, limestone, igneous and metamorphic rock, as well as others.
There are 18 types of pools such as structural, fault, hidden, as well as others. The
enrichment is about 2 million tons per square kilometer.
Over the past three decades more than 60 different oil/gas fields have been found
and over 10,000 production wells have been drilled. A million tonnage offshore
oilfield has also been established.
Further details, including what impact the Chinese oil & gas business will have on
Digital's financial condition, will be made public after a full report is delivered to and
reviewed by the Board of Directors of the company.
In related news, Digital Gas has acquired oil & gas leases within the domestic
United States and has plans to acquire additional leases in the same area. When
the company's acquisition program is completed, management will release all
relevant details.
To raise funds to accelerate its long-term plan to acquire highly prospective oil &
gas properties in North America, Digital Gas will shortly seek to retain an
investment advisor or banking firm that specializes in the Internet, software and
telecommunications fields to assist the company in leveraging or otherwise selling
its assets in these areas. The investment advisor or banker will also be asked to
advise the company on listing the company's shares on Nasdaq or an appropriate
other exchange. The company has completed its Form 10 registration statement
with the required financials on an unconsolidated basis through the third quarter of
1999. It is currently waiting for the completion of the financials of a subsidiary
before filing with the SEC to become a reporting issuer. The submission is
expected to take place shortly.
For further information, contact Robert Lynn, President, at 214-691-3640 or at
info@digitalgas.com.
SOURCE Digital Gas
/CONTACT: Robert Lynn, President of Digital Gas, 214-691-3640,
info@digitalgas.com/
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