News out on OEL.V
Osprey Energy Ltd (2) - News Release
Osprey proposes $800,000 non-brokered private placement
Osprey Energy Ltd (2) OEL
Shares issued 10,908,621 Sep 18 2002 close $ 0.40
Thursday September 19 2002 News Release
Mr. Bernard Robichaux reports
Osprey has arranged a non-brokered private placement of up to two million units at a price of 40 cents for a total of $800,000. Each unit will consist of one flow-through common share and one non-transferable share purchase warrant exercisable at 60 cents until Sept. 15, 2004. The funds will be used for the company's participation in drilling programs this fall in Prince Edward Island and Nova Scotia. As Canadian exploration funds, contributions qualify for favourable tax treatment under the flow-through provisions of the Income Tax Act.
On Prince Edward Island, Osprey holds a 10-per-cent working interest in seven onshore exploration permits for natural gas and coal bed methane. The 642,128 acres cover nearly half of the land mass of the province. The project operator, Rally Energy of Calgary, plans to drill and test five exploratory wells this fall at a cost of about $500,000 for each of the shallow (less than 2,000-metre) wells. A 127-kilometre seismic program conducted this summer is being used to supplement previous seismic work in defining precise drilling targets.
On mainland Nova Scotia, Osprey holds a 25-per-cent interest in 220,000 acres where the first of two wells will be drilled this fall. Data interpretations from a seismic program conducted last summer have been integrated with previous seismic and geological work that indicates significant potential reserves of oil and natural gas.
The company expects that an agreement with a major service company will soon be finalized for a work program to significantly enhance production on its three Louisiana properties. |
