CANADIAN OILPATCH / CUBE ENERGY - OHIO RESOURCES
OHIO RESOURCES CORPORATION
VSE SYMBOL: OHO
AND CUBE ENERGY CORP.
TSE SYMBOL: CUK
NOVEMBER 26, 1996
Ohio Resources Corporation and Cube Energy Corp. Company
Update
CALGARY, ALBERTA--Cube Energy Corp. "Cube" (TSE-CUK) and Ohio
Resources Corporation "Ohio" (VSE-OHO) announce that they have
negotiated a farmin on a 1.1 million acre concession in the
Republic of Palau in the Philippine Sea. The farmin commitment
involves a 200 mile marine seismic program targeted to better
delineate the shallow Miocene reef features that were first
identified in a previous survey over the Palau Archipelago
conducted in the 1980's. The companies believe that the Palau
exploration program has the potential to define a northern
extension to the under-explored Salawati Basin, where large oil
bearing Miocene reefs were first discovered 400 miles to the south
in New Guinea in 1973. Two of those discoveries, Walio and Kasim,
have produced over 222 million barrels of light oil to date.
In addition to the favourable geological environment, Cube and
Ohio were attracted to the prospect by the stable host government,
which has implemented a very competitive royalty regime, a
favourable deal structure which allows Ohio, as to a 20 percent
interest, and Cube, as to a 25 percent interest, to earn an
interest in the entire concession by conducting the seismic
survey, and also by the fact that any drilling would be conducted
in relatively shallow water depths of 75 to 200 feet.
The seismic program has commenced and once the data has been
processed and evaluated the partners will determine how best to
proceed with the drilling of any anomalies defined, including the
possibility of involving other industry participants.
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