Knight Petroleum CDNX: KNP is one you should keep an eye on. These guys just signed a deal with a private company called Polaris who have the rights to a play in the foothills with multi-trilion-cubic-foot potential. There is also a major third party involved.
October 31, 2001
Number: 038-01
NEWS RELEASE
VANCOUVER (October 31, 2001) – Mr. Harvey Keats, President of Knight Petroleum Corp., is pleased to report that the Company has entered into a farmout agreement with Polaris Resources Ltd. ('Polaris'), to participate and earn a 25% before payout working interest, subject to a 9% overriding royalty, and a 20% after payout working interest in a large gas prospect in the Foothills region of Alberta, Canada.
The prospect is a large geological structure that is prospective for natural gas. The structure is surrounded at some distance by major natural gas fields, which are some of the largest gas fields in Alberta producing from Devonian and Mississippian Formations. Geophysical and geological mapping indicate a structural closure causing a large potential reservoir for natural gas in the Mississippian and Devonian Formations. Secondary targets exist in the overlying Cretaceous Formations. The structure, as mapped, is 10 kilometres in length by over 1 kilometre in width and structural closure is interpreted to be in excess of 100 metres. Most, if not all of the drillable locations are believed to be on the Polaris lands. A portion of the structure is inaccessible due to environmental restrictions.
It is estimated that the cost of an initial 5,000 metre test well will be $9 million. (Knight's portion will be approximately $2.25 million)
In addition to Knight's 25% working interest, Polaris has retained a 25% working interest and a third party has signed an agreement with Polaris for a 50% working interest on the same terms as Knight. Knight has a director in common with Polaris.
The above agreement is subject to the approval of the Canadian Venture Exchange.
On Behalf of the Board of
Knight Petroleum Corp.
“Harvey Keats”
President
Suite 1360 • 605 Robson Street
Vancouver • BC • Canada • V6B 5J3
Tel: (604) 684-6535 • Fax: (604) 602-9311
Web Site: www.knight-petroleum.com
E-mail: knight@bed-rock.com
CDNX Trading Symbol: KNP
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE |
