Jeff,
An even newer update, received via email from AXPL.
I like it, they seem to proceed according to plan.
Regards
ps
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AMALGAMATED EXPLORATIONS, INC.
June 16, 1997
BUSINESS SUMMARY
Amalgamated Explorations Inc. (OTC.BB:AXPL) is a technology company and an
exploration company, engaged in the development of oil, natural gas and
mineral deposits. The focus is on large "elephant" size deposits utilizing a
new exploration technology, the Electrotelluric survey.
NEW REVOLUTIONARY ELECTROTELLURIC TECHNOLOGY
November of 1996, Amalgamated Explorations acquired MSP Technologies, Inc.,
the inventor of the Electrotelluric survey technology as a wholly owned
subsidiary. MSP Technologies has put Amalgamated at the forefront of
exploration technology. Telluric's has been used since the 1940's in
exploration. This technology is sometimes referred to as "black box"
technology. Not until recent developments in electronic circuitry has the
ability for the "black box" technology to actually work. Amalgamated/MSP
have patents pending on a method of scanning the Earths depths with the
Electrotelluric technology.
The Electrotelluric survey works with the electrical properties of the
earth. Monitoring the Earths natural electromagnetic field with low
frequency radio waves. As these low frequency radio waves pass through the
Earths subsurface, the different conductors and nonconductors of electricity
create noise. Oil, being a nonconductor of electricity, is the noise-signal
the survey detects. The signals are recorded on the survey printout. A flat
line signal reading means "dry hole" and a strong signal-kick shows
"presence of hydrocarbons." Utilizing a depth-to-frequency curve,
Amalgamated/MSP can determine the approximate depth of the hydrocarbon. This
electromagnetic subsurface survey takes approximately five minutes,
pinpointing hydrocarbon detections where you stand, and works to depths of
approximately 17,000 feet.
The technology fits in a hand-carrying case and is environmentally friendly.
In areas with difficult terrain, the survey has proven to be advantageous.
The Electrotelluric survey works best in conjunction with 2D or 3D seismic
surveys. After determining a good seismic structure, MSP can test the
proposed well or site for hydrocarbon content.
ACCURACY OF THE ELECTROTELLURIC SURVEY
During the summer of 1996 the technology was tested by Amalgamated before
the acquisition of MSP Technologies. The Electrotelluric technology was able
to detect known oil/gas formations and confirm existing oil well logs,
showing the oil and natural gas deposits at or around the correct depth. At
the same time, other independent oil companies, using MSP's surveys, were
having similar results. Upon realizing the advantages of using the
technology, Amalgamated hired MSP to survey existing and future oil/gas
lease prospects.
To date, the technology has accurately determined the presence of
hydrocarbons on twenty wells before drilling and numerous existing wells.
Amalgamated/MSP is confident a "no signal" reading means "dry hole". The
technology also is able to determine the approximate depth of the
hydrocarbon formation within one to three percent.
One must understand, like all new technology, 100% accuracy is not expected.
Especially with a device as sensitive as the Electrotelluric survey.
Atmospheric conditions, sunset, sunrise, power lines and other radio
frequencies effect the accuracy and results of the survey. The survey
receives a random occurring electro-magnetic wave. In general, geophysical
surveys which rely on random occurring fields will not repeat, and thus must
be analized statistically for anomalies within the geophysical data. This
"sweep through low-frequencies" is alike a snapshot in time. Therefore,
identical printout surveys or repeatability cannot be expected. What is
noticed is a consist signal within the surveys which show hydrocarbon
deposits. A formation with a hydrocarbon reservoir of quantity will show
consist signal or response.
THE FUTURE FOR ELECTROTELLURIC SURVEY
MSP continues to improve the technology and the ability to determine if an
oil/gas well will be commercially productive. MSP Technologies is also
aiding Amalgamated in mineral detection and exploration.
BUSINESS STRATEGY
Amalgamated looks for strength through diversification as a technology and
exploration company, safety through joint venture drilling, and
profitability from production of huge detected reserves. The company hopes
to position itself as a socially acceptable, environmentally and industry
friendly, efficient exploration company in hydrocarbons and minerals.
Amalgamated Explorations is an exploration company with a strong technology
subsidiary, MSP Technologies Inc. The technology is expected to
revolutionize the oil industry and help position Amalgamated at the
forefront of exploration technology. The technology gives the company a
competitive edge and can save dry hole drilling costs. It efficiently gives
the company the ability to analyze a prospect before lease acquisition and
look to the "elephant" size oil and gas deposits. The Electrotelluric survey
aids Amalgamated in being a environmentally friendly exploration company.
The elimination of un-necessary drilling of dry holes saves us all a
substantial amount of money and can also help stop environmental damage.
Environmental studies are required on many drilling prospects and the public
demand for environmental preservation should bring interest to Amalgamated
Explorations.
The company looks for the technology to "open many doors" to drilling funds
and industry-partner well participation. Amalgamated/MSP continues to offer
the Electrotelluric services to industry partners, creating diversification,
generating income, drilling participation, and quick-production potential.
Amalgamated has been and will continue to acquire large potential
oil/gas/mineral leases. Year-to-date, the company has acquired additional
leases near the famous Teapot Dome in Wyoming, Cave Gulch area in Wyoming,
Eastern Nevada, and areas in Montana and Oklahoma.
RECENT DEVELOPMENTS
Amalgamated's 1997 year-to-date lease acquisitions, utilizing the
Electrotelluric technology, total 21,400 acres. The most recent is 12,000
acres in eastern Nevada. The balance being 4400 acres in Montana and
approximately 5000 acres near the Teapot Dome area in Wyoming.
Developments at Cave Gulch Field, Natrona County, WY.-
New and deeper drilling projects are developing in the area. Barrett
Resources has proposed two deep test wells that will include lease rights
held by Amalgamated. The Cave Gulch #1-29 Lak Well is projected to an 18,000
foot depth to develop the Frontier, Muddy, Lakota, Morrison and Sundance
formations. The CGF # 3-29 MAD proposed well is scheduled to develop the
Madison formation to estimated 22,000 foot depth. Amalgamated is prepared to
participate in these development wells in proportion to its leasehold
interests.
It is expected that four Fort Union Lance wells will be drilled after the
August 4,1997 BLM decision is made on development procedures on the Cave
Gulch area. Three of the wells will be operated by Prima Oil and Gas with
Amalgamated as a 10% non-operator, and the fourth well with Chevron being
the operator and Amalgamated holding a 5% working interest. These wells are
waiting approval from the Bureau of Land Management's "Environmental Impact
Study" which results will be public August 4, 1997.
These wells will start the development of the estimated 42 billion cubic
feet of gas attributed to Amalgamated's share of the underlying proven
reserves. An estimated value to Amalgamated of $42,000,000 at one dollar per
thousand cubic feet.
Developments at Boone Dome Field, Natrona County, WY.-
Amalgamated holds approximately 3000 acres in the Boone Dome Field, located
12 miles southeast of the Cave Gulch area, in the Wind River Basin, WY.
Amalgamated has proposed a Federal Unit to develop the various oil and gas
interests in the area. The largest lease rights in the unit as proposed
would be Barrett Resources, Texaco, Amalgamated and Yates Petroleum.
The intent of the unit is to conduct an orderly development of the
subthrust, Niobrara, Frontier and deeper formations and the Stanking Fort
Union and Lance formations. Preliminary Electrotelluric surveys indicate
very strong potential for development of these formations in the Boone Dome
area.
Development of Cash Corner project in Oklahoma-
Amalgamated purchased a small working interest in the Cash Corner project
after MSP ran Electrotelluric survey for the operator. A 2% interest in the
project was purchased after Amalgamated reviewed the Electrotelluric
results. Drilling has been completed and oil/gas was found at or around the
Electrotelluric detected depths. Amalgamated is currently waiting for the
operator, Ingram Explorations, Inc. of Seminole, Oklahoma, to complete the
well.
Development on the Paymaster Project mining prospect-
A group on mining claims covering 10,000 acre volcanic trap near Goldfield,
NV. This area produced some of the largest gold, silver, copper and lithium
discoveries in the United States. Amalgamated is currently studying
Electrotelluric survey results taken over the prospect. The company plans on
an exploration drilling program for additional development.
Development of MSP Technologies, Inc.-
Amalgamated is pleased with the ongoing development of the Electrotelluric
technology and MSP's progress. John Jackson, President of MSP, continues
with advancement in the technology. The technology is attracting new clients
and creating revenue for MSP, one of Amalgamateds wholely owned
subsideraries. The survey fees have been increased and MSP now looks for
well/field participation situations with industry partners for Amalgamated.
Amalgamated financials-
Amalgamated completed a Private Placement offering in January, 1997 for one
million dollars. The company has no debt and is currently seeking drilling
funds to develop its lease holdings.
AMALGAMATED EXPLORATIONS, INC.
1645 COURT PLACE, SUITE 201
DENVER, COLORADO 80202 email address: webmaster@findoil.com
1-888-999-8787
For additional information and photos please visit Amalgamated's Internet
web site @ www.findoil.com. |
