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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (1894)	4/17/2001 7:12:43 AM
From: Al Collard	Read Replies (1) \| Respond to of 11802

Osprey, news on OEL: Tue 17 Apr 2001 News Release Mr. R. Gary Malone reports Osprey Energy has signed an agreement with Consolidated Beacon Resources for a Nova Scotia onshore seismic program. The two prospects, one near Debert, which Beacon acquired in 1994, and the other near Parrsboro, which was acquired in 1998, consist of 220,000 acres. They are part of the Maritime basin, a large sedimentary formation covering parts of the three Maritime provinces and the Gulf of St. Lawrence. The basin is about 57,000 square miles in area, with about 33 per cent located onshore. The accelerated revenues from Louisiana give the company the ability to participate in this exciting Nova Scotia geological play, without detracting from the continuing developmental program in Louisiana. Consolidated Beacon acquired a high-resolution seismic reflection program over a portion of the acreage. The findings indicate significant amplitude anomalies exhibiting potential structure at several horizons. A volumetric calculation of the main seismic amplitude anomaly indicates a 200-foot thickness. The potential recoverable reserves from this zone are estimated to be over 75 million barrels of oil and more than 345 billion cubic feet of gas. Osprey will earn a 15-per-cent working interest by paying $300,000 toward the costs of a new seismic shoot. Seismic confirmation of the favourable stratigraphy and drillable targets will facilitate the drilling of a Well. Osprey can earn an additional 10-per-cent working interest by paying 25 per cent of the cost of the first well, projected for a depth of about 2,500 to 3,500 metres. With this venture, Osprey joins a list of more than a dozen companies given exploration authority by the Nova Scotia Petroleum Directorate. Companies holding leases on lands immediately adjacent to the Beacon/Osprey prospect include Hunt Oil to the south, which has drilled and cased a well to a depth of 1,282 metres, and Northstar Energy, which is drilling to the southwest. Oil and gas companies now recognize that the Maritime basin has good prospects for oil and gas accumulations, as up to an estimated 30,000 feet (9,200 metres) of sediment exists. Corridor Resources and The Potash Company of Saskatchewan have successively drilled two wells in the basin in recent months near Sussex, N.B., with one flowing at a rate of 2.4 million cubic feet of gas per day and a second around one million cubic feet of gas per day. Another well, offshore in the basin, drilled by Fina tested at more than 5.5 million cubic feet of gas per day. Several other wells are scheduled to be drilled over the next year. Osprey has evaluated several projects in the Maritime basin, an area that is becoming more and more recognized for its hydrocarbon potential. This project was chosen based on the work done by Consolidated Beacon since 1994 identifying the potential hydrocarbon structures in the area and the intensive geological work performed on the company's lands over the last two years by the Geological Survey of Canada and the Nova Scotia Department of Natural Resources. Also, Capital Associates has agreed to assist the company in future financings and investor relations. Capital Associates is a European-based, globally oriented investment banking company offering a wide range of corporate financial and investor relations services. Osprey joins a select group of only six companies highlighted on the Capital Associates Web page (www.caipl.com), including three New York Stock Exchange companies, Placer Dome, Barrick Gold and Homestake Mining. The company welcomes this association and looks forward to a long-term mutually beneficial relationship.