Here is the latest pr i just found
Monday October 5, 9:30 am Eastern Time
Company Press Release
Nevada Manhattan Mining Purchases Natural Gas Field
in Illinois
CALABASAS, Calif.--(BUSINESS WIRE)--Oct. 5, 1998--Nevada Manhattan Mining Inc. (OTC BB:NVMH - news)
announced today that it had signed an agreement for the acquisition of a substantial interest in oil and revenue producing gas leases
located on the Plainview natural gas field on 25,000 acres of gas prospects. The agreement on the leases located in Macoupin
County in southwest Illinois is with S.M.T.V. and Western Pipeline Group.
The company is acquiring 100 percent of the interest owned by S.M.T.V. as well as the associated pipeline operations in the
prospect of Western Illinois Pipeline Group from Donald Reid for 1 million shares of Nevada Manhattan Mining, $5 million in cash
(a significant portion of which will be reinvested in the field's development) and share options in Nevada Manhattan Mining's stock
for terms to be negotiated.
Based on representations made by the seller and his agents, expected earnings from the pipeline operations are projected to be
$250,000 for the fourth quarter of 1998 from 16 wells operating in the field. Phase 1, already in progress, consists of ''hooking up''
an additional 33 wells which have already been drilled and capped. These 49 wells are located on less than 10 percent of the total
acreage under lease. Current plans call for drilling a minimum of 25 more wells.
According to Dr. Fred Caspall, consulting geologist and associate professor of geology at Western Illinois University in Macomb,
Ill., since 1969, the reserves the company has been able to confirm may represent only a small portion of the 13 to 31 BCF (billion
cubic feet) of his estimate of potential reserves. Caspall has also projected a 50-60 percent completion rate for future wells.
In its initial due diligence on a small part of the holdings prior to entering into the agreement, the company has been able to confirm
approximately an initial 4.76 BCF of natural gas. Additional due diligence and confirmation is planned to commence immediately.
Based upon representations made by the seller, the company's interests to be acquired in the prospect could yield as much as
$500,000 per month in net revenues commencing as early as the beginning of the second quarter of 1999. Verifications of these
projections are part of the due diligence that the company intends to perform in connection with this project.
The gas field came on line in early summer when testing and production began. The reserve estimate from the production zones
(from the above noted report) is in the Pennsylvania sandstone geological formation. In addition, natural gas has been discovered in
a second lower formation in the St. Louis limestone, and oil has been discovered in the lower Pennsylvania formation. 6 The
agreement also encompasses the acquisition of an additional gas prospect located in southern Utah.
Matters discussed in this release include forward-looking statements that involve risks and uncertainties. Actual results may be
materially different. Factors that could cause actual results to differ include risk factors listed in the company's reports to the
Securities and Exchange Commission, including Form 10-KSB and Form 10-QSB on file with the SEC.
For more information on Nevada Manhattan Mining, contact Yvonne Cambere at 818/591-4400, e-mail:
administration@nevadamanhattan.com or visit the company's Web site at www.nevadamanhattan.com.
|
