Gresham Resources Inc -
Bow Creek participation and drilling
Gresham Resources Inc GRCShares issued 68623321997-08-19 close $1.01
Tuesday Aug 19 1997Also Stanford Energy Corporation (STB) Mr James Glass
reports The company and its partner, Forest Oil Corp have acquired the
entire interest owned by St. Mary Land & Exploration Company and
Panterra Petroleum in the company's Bow Creek 3D survey project, which
includes the South Heart River and South Norwegian Creek prospects,
approximately eight miles southwest of the company's Eland field. (See
news in Stockwatch June 28 1997.) The company and Forest have also
acquired all the interest of St. Mary/Panterra in the company's Cupcake
prospect. The company (50%) and Forest (50%) now own or control
approximately 20,000 gross acres in Stark and Billings counties, North
Dakota. In conjunction with Forest the company has entered into an
agreement with STB Energy Inc, a wholly owned subsidiary of Stanford
Energy Corp to jointly explore and develop the Bow Creek survey acreage.
By financing the drilling of three exploratory wells, STB has the right
to earn up to an undivided one third interest in the Bow Creek survey
lands that are jointly owned by the company and Forest. Interpretation
of the Bow Creek 3D survey has identified multiple drillable prospects,
targeting five producing horizons, the Pennsylvanian Tyler, Upper
Mississippian Fryburg, Lower Mississippian Lodgepole, Silurian Interlake
and the Ordovician Red River. Drilling is anticipated to commence as
soon as a drilling rig can be contracted with Forest acting as operator.
(c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
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Bob,
Just wanted to post this so everyone is reading from the same page. As indicated there they have farmed out the next 3 wells to Stanford Energy. When I called to follow up on this I found out that Stanford has the right to back out after the first well, but that not likely.
Gresham has already made several discoveries up there in the Lodgepole
play and are currently generating about C$.40 a year in cash flow with no debt. They have been very conservative so far in order to avoid getting overextended financially in case another discovery is made and they need funds to develop it out.
Due to the value of the reserves they have already discovered they have millions of $$$ of unused borrowing power at this point so the finances are looking real good right around now.
I would have preferred that they would have diversified by now into another play to complement their North Dakota stuff but they just ain't that kind of people. So this is not one to bet the ranch on but IMO it ought to be a part of any O&G exploration stock portfolio. |
