PROPERTY ACQUISITION / Quadra granted Colombia concession
Quadra Resources Awarded Large Exploration Concession in Colombia Offsetting Discovery
CALGARY, Nov. 4 /CNW/ - Quadra Resources Corp (QDRA.U, CDN), is pleased
to announce it has been awarded the Iraca Norte Association Contract. Quadra
received from Ecopetrol, the Colombian state-owned oil and gas company,
written confirmation that all terms and conditions concerning this Contract
have now been fully agreed to. Quadra has a 100 percent working interest in
the 256,030 acre (103,610 hectares) area which comprise this Contract.
Throughout the year Quadra undertook extensive negotiations with
Ecopetrol regarding the size, and the configuration of the Contract and the
work commitment covering the first and subsequent exploration phases. During
the initial 18 month exploration period Quadra is required to reprocess 200
kilometres of existing two-dimensional seismic and drill one exploration well
to a depth that will test the first prospective horizon. The estimated cost
for this initial work program is US$2 million.
Quadra is one of the largest acreage holders in the Cesar Basin. Quadra
believes this Contract represents a very significant opportunity for the
Company. Based on current seismic review, the Iraca Norte Association
Contract contains seven distinct geophysical structures that are prospective
drilling locations. The main structure is the continuation of the Compae
structure that was tested in the offsetting Maracas Block and which has proven
the existence of significant oil and gas reserves (Quadra has a 10% working
interest). As much as half of the structure lies on the Iraca Norte Contract.
Based on an independent petroleum consultant analysis, the Iraca Norte
Association Contract contains 18,648 acres of the Compae structure, with
potential reserves of 150 million barrels of oil plus 500 billion cubic feet
of natural gas in the Lagunitas and La Luna zones. In addition, this structure
contains three additional prospective deeper formations.
Quadra's common shares are quoted for trading on the Canadian Dealing
Network under the symbol ''QDRA.U''. As of November 4, 1998 there are
22,043,400 shares issued and outstanding.
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For further information: Michael B. Nugent, Chairman and Chief Executive
Officer, Quadra Resources Corp., (403) 263-2789, Fax: (403) 269-9719 |
