To: rrufff who wrote (1449) 6/22/2006 12:11:10 AM
From: Creede Bighorns of 1450
Rrufff,
I see that as HUGE news. Why? Because we know from the Investors letter that they are working diligently to land a whopper.
Uintah Aquisition Planned
May 16, 2006: This Investor Newsletter is designed to help keep our stockholders informed on the kinds of things we’re currently working on, and how these things might interact with Northamerican Energy’s short, and long, term goals, and plans, for the future.
Specific public announcements and news releases will continue to be posted as newsworthy events occur, but in the time periods between those releases this Investor Newsletter will fill in the gaps and continue to keep you, our investors, informed.
Existing Leases And Wells: The workovers of our existing leases, and their wells, are ongoing and as you know as a result of the huge jump in oil prices this year many more wells are being worked over, and new ones are being drilled, and so equipment and labor costs have escalated accordingly, and given the fact that equipment and labor is in short supply, it still constricts our ability to get things done in a timely manner.
Our crews, in concert with Well Enhancement Services, has completed the first two, of hopefully many, workovers of wells on two of our leases in Pecos County, Texas, by drilling out with high pressure water jetting 300' in multiple laterals in 6 different directions from the well bore to increase the existing production zones.
The results are still not available as further downhole treatments will be required to enable us to fully analyze and determine the final results, but as always we will endeavor to keep you informed as soon as those results are in.
Acquisition of New Leases & Wells: With the cooperation, and in coordination with, an associated company, Northamerican Energy has entered into memorandum of understanding to acquire the deep rights in an 8,000 acre concession in the Uintah Basin in Utah, which upon completion of some legal proceedings to clear title to the leases by the associated company will then be acquired by Northamerican Energy. It is anticipated these proceedings will be completed within 60 days.
Deep test wells were drilled on these leases by one of the majors in the early 70’s which indicated gas shows but they did not proceed with the development at that time due to lack of a market, and infrastructure to reach market. Since that time another major oil company, who along with other major production companies, own and operate hundreds of wells in the shallow zones above these deep rights, have installed gas gathering and transmission facilities on these leases which will enable Northamerican Energy to transport and market gas for the wells Northamerican intends to drill. A 2004 U.S. Geological Survey calculates that the Uintah Basin contains 14-26 trillion cubic feet (TCF) of non-associated undiscovered natural gas.
As previously announced we are continuing to explore other leases, and their wells in Texas, wells that were plugged and abandoned and after completing our due diligence on each of the fields and wells plan to acquire these leases and rework wells that were originally drilled into some of the deeper formations by majors and plugged after they either didn’t meet the major oil companies criteria, or in some cases were simply plugged after being fully produced in the deeper zones.
Other Acquisitions: We have continued discussions with the company to acquire the assets of an oil company with the owners whose leases in many cases adjoin ours who would like to sell out and retire. The reserve reports which have are in process of being completed by an independent reservoir engineering firm should be completed this week to enable us to move forward on this acquisition.
Other Items of Interest: The Muddy Gas acquisition has unfortunately once again been tabled until late summer due to the inability of Muddy Gas LLC to move forward as we anticipated. .
With the help of one of our major stockholders, who is also in the energy field, we are continuing to move forward with the Casper, Wyoming oil and gas operating company to investigate the acquisition of other major fields and wells in the Rocky Mountain area.
This is an exciting time to be in the oil and gas field and because of that new business opportunities continue to offered to us on a daily basis.
In closing we again hope that these Investor Newsletter’s will help you to keep you current on what’s happening to our company and aid you in better understanding what we’re attempting to accomplish.
God bless all of you,
Jon Ginder
Chairman & CEO
Why else would they be arranging big financing unless one of these are on the table? If Muddy or Unitah closes then I think we could see a ten bagger in a hurry.
GB-ND
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