Negotiated Significant Financing Arrangement With Cannacord Capital
8/20/01
GOLDEN ARCH RESOURCES LTD. ("GAI-V;GARCF-0") - Negotiated Significant Financing Arrangement With Cannacord Capital - Corporation
Golden Arch Resources Ltd. (the 'Company') is pleased to announce that, subject to regulatory approval, it has negotiated a significant financing arrangement with Cannacord Capital Corporation. Details of the agreement will be released upon signing. Funds raised will be used to enhance the Company's endeavors with The Cumming Co. of Fort Worth, Texas in its Barnett shale natural gas play.
The Barnett Shale field is located approximately 40 miles northwest of Forth Worth, Texas, ranges in depth from 6,000 to 8,000 feet, and averages 550 feet of pay. Based on a 1998 forecast prepared by the U.S. Geological Survey, this extensive gas accumulation was estimated to have an overall 10 trillion cubic feet of recoverable reserves, equivalent of a 1.67 billion barrel oil field. The use of light sand fracture technology - forcing massive amount of water carrying small amounts of sand into the formation - is driving the development rush in the Barnett Shale field. Barnett Shale production was first established in the Newark East Field in Wise and Denton counties, where it grew from less than one billion cubic feet of gas from 25 wells in 1985 to 19.2 billion cubic feet from 306 wells in 1995. During the past five years, production has more than doubled to 189 million cubic feet of natural gas per day from over 500 wells. Current expected recoveries amount to only 8% of actual gas in place.
In relation to the Barnett Shale, it is significant that, with the recently-announced acquisition of Mitchell Energy & Development Corp. (MND;NYSE), by Devon Energy Corporation, about 60 percent of Mitchell Energy's total natural gas production and over 75 percent of its proved reserves come from North Texas. TEL: 604-575-3100
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