Cryptic news was released today:
First Lodgepole Test Well Spudded on Coastal Petroleum Company's Valley County, Montana Leases
APALACHICOLA, Fla., Nov 05, 2007 /PRNewswire-FirstCall via COMTEX/ -- Phillip Ware, President and Chief Executive Officer of Coastal Caribbean Oils & Minerals, Ltd. (OTC Bulletin Board: COCBF) ("Coastal Caribbean" or the "Company"), announced today that the first Lodgepole exploratory oil well was spudded Saturday on the Valley County, Montana Leases ("Leases") held by the Company's wholly owned subsidiary, Coastal Petroleum Company ("Coastal").
This is the first well to be drilled under the September 25, 2007, agreement with F-Cross Resources, LLC ("F-Cross") under which F-Cross paid Coastal $50,000 for the option to drill a Lodgepole test well within six months with an option to acquire an interest in the surrounding acreage. Ware said, "To begin exploring the Leases with F-Cross now really adds momentum for the Company and we believe that this well has the potential to be just the first Lodgepole prospect we can exploit for the benefit of both companies." The well is considered a "tight hole" and drilling results will remain confidential until the well is completed and tested.
F-Cross will operate the well, will pay the cost of drilling the well and will hold a 100% working interest in the well until payout and an 80% working interest after payout with Coastal receiving the other 20% working interest. Upon completion of the test well, F-Cross will have the option to acquire a 50% working interest in the approximately 64,000 acres of the westernmost part of Coastal's Leases, for $25 per acre. The option could be extended an additional six months if F-Cross drills a second Lodgepole test well on the Leases.
Now in its 55th year, Coastal Caribbean Oils & Minerals, Ltd., is engaged in the exploration for and development of oil and gas reserves through its wholly owned subsidiary, Coastal Petroleum. Coastal Petroleum's principal assets are its cash and its non-producing oil and gas leases within the Williston Basin, covering approximately 9,000 net acres in North Dakota and approximately 137,000 net acres in Montana.
Certain statements included in this press release, which are not historical in nature, are intended to be forward-looking statements. Coastal Caribbean cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Coastal Caribbean Oils & Minerals, Ltd.
URL: coastalcarib.com
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Copyright (C) 2007 PR Newswire. All rights reserved
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KEYWORD: Florida
INDUSTRY KEYWORD: OIL |
