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Gold/Mining/Energy : Adda Resources -- Ignore unavailable to you. Want to Upgrade?

To: harry-the-original who wrote (569)	3/19/2001 6:29:22 PM
From: LowtherAcademy	Read Replies (1) \| Respond to of 571

TEXAS DRILLING AND LAWSUIT (WINFIELD RANCH) UPDATE Vancouver, B.C. - March 19, 2001 - ADDA RESOURCES LTD. today announced an update regarding the Winfield Ranch 17 1-E well drilled in Pecos County, Texas. Adda is a working interest participant in the Winfield Ranch No. 17-1E well which in 1998 was drilled, logged and cased to a total depth of 25,740 feet. Log analysis indicated a potential for more than 1,100 feet of gross pay in the Ellenburger formation, a highly prolific gas zone in the region and the primary objective of the well. In early December, 1998, during operations to clean out the production casing, a string of drill pipe manufactured and supplied by subsidiaries of Weatherford International, Inc. parted and became stuck in the bottom section of the hole. The same string of pipe parted a second time during retrieval efforts and efforts to retrieve the stuck string were not successful. In March, 1999 the working interest owners together with the operator, Baytech Inc., filed a lawsuit against Weatherford in state court in Pecos County, Texas seeking compensatory, exemplary damages, and attorney fees as a consequence of the failures in the pipe. The trial date for the lawsuit against Weatherford has been rescheduled for September 04, 2001. On March 7 and 8, the working interest owners and their attorneys met with representatives from Weatherford, their insurance carrier and their respective attorneys in an attempt to reach a settlement of the lawsuit. No settlement was reached. In an effort to mitigate damages Weatherford took over operations at its sole risk and expense and is attempting to sidetrack the well into the Ellenberger formation that was encountered at 24,630 feet in the original wellbore. On March 9, 2001 while drilling ahead at a depth of 24,407 feet, part of the downhole motor assembly twisted off from the drill pipe. Fishing operations commenced. As of March 18, Weatherford was continuing its attempts to retrieve the fish. The working interest owners have made no agreement with Weatherford other than consenting to allow Weatherford to attempt such mitigation efforts. Through its wholly owned subsidiary Adda Petroleum (Texas) Inc., the Company holds a 6% interest prior to payout and a 4.5% interest after payout in the Winfield Ranch well and owns the same percentages in the recovery, if any, in the lawsuit against Weatherford. Adda Resources Ltd., a Vancouver based independent oil and gas company engaged in petroleum exploration and development projects, is listed on the Canadian Venture Exchange under the symbol ADA. On behalf of the Board of Directors, ADDA RESOURCES LTD. “Brian C. Doutaz” Brian C. Doutaz Director