Farmin agreement with Diaz Resources
Olympic Resources Ltd ORL
Shares issued 9,639,378 Apr 6 close $0.68
Mon 6 Apr 98 News Release
Mr Daryl Pollock reports
Olympic Resources has entered into a farmin agreement with Diaz Resources
in relation to Diaz's 23% interest in the South Lakeside prospect in
Cameron Parish, Louisiana.
Olympic will pay Diaz's share of the drilling and completion costs of an
18,000 foot re-entry and sidetracking operation from an existing cased
wellbore on the property, to earn 75% of Diaz's interest in 2,982 gross
acres of land on the prospect. Following completion of the well, Olympic
will hold a 17.25% interest and Diaz will hold a 5.75% interest in the well
and lands.
Canaccord Capital is receiving a fee as finder and financial adviser of
350,000 special warrants in connection with the acquisition. The special
warrants are exchangeable, at no additional consideration for a warrant
which will entitle the holder to acquire 350,000 shares at $0.50 for one
year.
According to industry sources, this prospect is a high impact Oligocene
Miogypsinoides gas prospect, which could contain in excess of 500 billion
cubic feet of natural gas reserves, with production rates of 20 to 25
million cubic feet of gas per day per well.
The re-entry operation is scheduled to be commenced in late May 1998.
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