FOR IMMEDIATE RELEASE
TEXAS LAWSUIT UPDATE / OPTIONS SET
Vancouver, B.C. - September 12, 2000 - ADDA RESOURCES LTD. today announced an update regarding the Winfield
Ranch 17 E-1 well drilled in Pecos County, Texas and has agreed to the granting of incentive stock options to directors,
officers and employees of the Company.
Adda is a working interest participant in the Winfield Ranch No. 17-1E well which was drilled, logged and cased to a total
depth of 25,740 feet. Log analysis indicated a potential for more than 1,100 feet of gross pay in the Ellenburger formation, a
highly prolific gas zone in the region and the primary objective of the well. In early December, 1998, during operations to
clean out the production casing, a string of drill pipe manufactured and supplied by subsidiaries of Weatherford
International, Inc. parted and became stuck in the bottom section of the hole. The same string of pipe parted a second time
during retrieval efforts and efforts to retrieve the stuck string were not successful. In March, 1999, when settlement
discussions with Weatherford and its insurers failed to yield an acceptable settlement, the working interest owners together
with the operator, Baytech Inc., filed a lawsuit against Weatherford in state court in Pecos County, Texas. The lawsuit seeks
compensatory damages, exemplary damages and attorney fees as a consequence of the pipe failures. The company is
confident of a favourable outcome in the litigation.
Weatherford has now announced its intention, in an effort to mitigate damages, to re-enter the Winfield Ranch No. 17-1E
well and attempt a sidetrack into the Ellenburger formation at its sole risk and expense. The working interest owners have
made no agreement with Weatherford other than consenting to allow Weatherford to attempt mitigation efforts. To date,
Weatherford has not commenced operations. The working interest owners will continue to prosecute the lawsuit which is
presently set for Dec. 4, 2000, with an alternative date of Jan. 22, 2001. Adda holds a 10% interest prior to payout and a
7.5% interest after payout in the Winfield Ranch No. 17-1E well and owns a 6% BPO interest and a 4.5% APO interest in
the recovery, if any, in the lawsuit against Weatherford as a result of the Company being unable to fully fund its portion of
the legal costs of the lawsuit.
The Board of Directors has granted 1,800,000 Officers and Employees Incentive Stock Options at a price of $0.10 per
share exercisable for a period of two years.
Adda Resources Ltd., Vancouver based independent oil and gas company engaged in petroleum exploration and
development projects, is listed on the Canadian Venture Exchange under the symbol ADA.
On behalf of the Board of Directors,
ADDA RESOURCES LTD.
“Brian C. Doutaz”
Brian C. Doutaz
Director |
