Double Down signs JV agreement
Double Down Resources Ltd DDX
Shares issued 3,004,527 Dec 30 close $0.20
Mon 11 Jan 99 News Release
Mr. David Rutt reports
Double Down Resources has negotiated and signed a joint venture agreement
to participate in a natural gas play onshore Prince Edward Island on the
Souris permit. The play is on the Magdalen basin where previous drilling
for oil encountered gas in 50 per cent of the wells drilled, including one
offshore well 40 kilometres from the Souris permit which was classified as
a significant discovery and produced at the rate of 5.3 mmcf/d in
production testing. The permit is host to four known leads, or targets, of
exceptional potential, with the primary target being the Bear River
prospect.
The viability of the play has been greatly enhanced in the past year due to
the proximity to the Sable Island Pipeline gathering system slated for
completion in November 1999. This system provides for the distribution of
gas throughout Eastern Canadian and into the Northeastern United States.
The company will earn a 49 per cent working interest in the Souris permit
by providing 70 per cent of the cost to complete the initial test well on
the Bear River prospect, estimated to be $2,300,000 for the dry hole costs
and a further $800,000 for completion. The company will also pay the permit
holder 100,000 shares and $4,000 upon VSE approval and a further 100,000
shares upon successful production testing. The permit holder has committed
to providing 30 per cent of the cost of the well. The company anticipates
that the remaining costs will be provided through a combination of
financing and farm-outs to industry partners and further anticipates the
spudding date to be late April 1999.
Claude Anger has jointed the board of directors. Mr. Anger is the
discoverer and holder of the Bear River prospect and brings with him over
40 years of international oil and gas exploration experience. In addition
to being instrumental in the first discoveries of oil in Gabon, Congo and
Algeria, he was chief geophysicist for SOQUIP, acquiring, processing and
mapping thousands of miles of seismic lines on 40,000,000 acres in Quebec
and Eastern Canada.
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