This is the latest Company announcement from Xenolith down here in Oz.Market depth is as follows and is current in the ASX pre open Monday morning.
Quantity Price
1 1 50,000 12
2 1 50,000 11.5
3 1 68,000 10
4 1 50,000 8.5
5 1 300,000 7
6 1 27,000 5
7 1 158,643 4
Price Quantity Number
14.5 31,000 1 1
15 71,000 2 2
15.5 50,000 1 3
18 94,000 1 4
20 330,000 4 5
21 7,000 1 6
Snapshot taken at 7:12:11, Monday, 2 August 1999 AWST
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Company Announcement
XENOLITH GOLD LIMITED 1999-07-30 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
MEXICO - "Koala" Base Metals Project
Xenolith's interest in this project is a 5% free carry to production
and as a consequence the Company is not required to commit funds
until the project is proven to contain a viable resource, development
has taken place and the project is actually in production.
No exploration expenditure was incurred by the operating partner,
Consolidated Magna ventures Ltd, during the quarter under review and
it is unlikely that any further work will be carried out on the
"Koala" property until after the close of the 1999 calendar year. The
reason for this is that Consolidated Magna Ventures has announced a
change of direction, together with its intention to acquire the
internet access company CoyoteNet Inc.
Xenolith owns 37,500 shares in Consolidated Magna Ventures (acquired
as part of the farm-out consideration) and as at 30 June 1999 the
proposed changes, mentioned above, had little impact on the value of
such shares. However, Magna management has stated that "as part of
the listing process, Magna shareholders will undergo a share
consolidation in a ratio to be determined and receive a share
dividend for Magna's mining assets. It is anticipated that the share
dividend will be in another new listing, to be called Magna Minerals
Inc.". At Xenolith, we took forward to an early resolution to these
matter's in order that exploration can recommence at the "Koala"
project.
REAL ESTATE
The company's real estate at Queanbeyan is retained, and although
there is no immediate need to dispose of the property, management is
considering alternative uses for the funds that would be released by
any sale.
EAST LOST HILLS, CALIFORNIA - Oil/Gas Project
KOB Energy Inc., an unlisted company incorporated in the USA, has a
5.25% working interest in the East Lost Hills project.
* Xenolith has a direct 6.2% equity in KOB Energy Inc.
* Kookaburra Resources Ltd, the Toronto listed company in which
Xenolith has an investment, has a direct 85% equity in KOB Energy
Inc.
The East Lost Hills project is a high risk/high impact oil and gas
play covering an area of approximately 26,000 acres in the San
Joaquin Basin in Kern County, California.
The first well, Bellevue #1-17, was spudded in May 1998 and its aim
was to test the Temblor sands down to a depth of 18,500 feet. On 23
November, after having just entered the Temblor sands at
approximately 17,600 feet, the well blew out and shortly afterwards
the hydrocarbons erupting from the well ignited. For 15 days the fire
continued unabated with a flame estimated to be approximately 200
feet in height. On 8 December 1998 the fire extinguished itself and
the flame was replaced by hydrocarbons and water.
International experts, Boots & Coots IWC, were called in to control
the well but all attempts at a surface kill failed and a relief well,
Bellevue #1-17R, had to be drilled to intersect the blown well. Heavy
mud and cement were pumped, via the relief well, into perforations in
the blown well at 16,668 feet and on 29 May 1999 the Bellevue #1-17
well was declared killed and was plugged back and abandoned.
The relief well, Bellevue #1-17R, was then used to sidetrack a
replacement well into the targeted Temblor zone. The sidetrack took
place at approximately 10,800 feet, and as officially reported,
drilling was halted at 17,100 feet on 20 July 1999. Intermediate
casing was to be run full length, cemented and pressure tested prior
to drilling into the targeted Temblor zone. It is anticipated that
drilling will recommence in the first week of August.
Although not officially confirmed, it has been publicly reported by
one of the partners in the project, that a second rig is being moved
onto the East Lost Hills prospect and is expected to commence
drilling in early August at a site approximately two miles northwest
of the present drill site. The same partner has also stated that the
rig currently working on the Bellevue #1-17R re-drill well, once
drilling is completed, is scheduled to be moved to a new location at
East Lost Hills and such partner believes this is expected to take
place in September.
If the above assumptions are correct then it is possible to envisage
that one well will have been completed at the East Lost Hills
prospect and two new wells will be in progress at the close of the
September quarter.
GENERAL
Xenolith's exposure to the East Lost Hills project, via its
shareholding in KOB Energy Inc. and its shareholding in the Toronto
listed Kookaburra Resources Ltd, continues to be of benefit to the
Company. However, regardless of indications to date, North American
market comment and the benefits accrued from the company's exposure
to the East Lost Hills project, we consider it appropriate to stress
that it remains a high risk project.
G D Robinson
DIRECTOR |
