Hi Jim,
Thank you.
Here is the interesting part: ( More wells well be drilled!!! )
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USE OF PROCEEDS
Assuming all of the Units are subscribed for, the net proceeds to be derived by the Corporation from the Offering of Units will be approximately $3,536,501 after deducting expenses of this Offering estimated at $84,320 (which includes the fee payable to the Manager in the amount of $232,074, and general expenses of this issue estimated at $15,000). The gross proceeds to the Corporation from the exercise of the Warrants, assuming full exercise of the Warrants, will be $11,879,963. The aggregate net proceeds are intended to be used to fund anticipated Crown petroleum and natural gas lease acquisitions in the Turner Valley prospect and to fund participation in the expected development drilling in the Turner Valley prospect as set forth in the following table. See Properties of the Corporation - Turner Valley, Southwestern Alberta.
A. Exercise of Rights - Maximum proceeds of $3,867,895
Use of Proceeds
Amount
Deepen and complete 11-12-19-2 W5M, cased, suspended Mississippian gas well, into Devonian Wabamun Crossfield Member at depth of approximately 12,000 feet Potential Crossfield zone gas well
$ 820,000
Deepen and complete 7-25-20-3 W5M, cased, suspended Mississippian gas well, into Devonian Wabamun Crossfield Member at depth of approximately 12,000 feet Potential Crossfield zone gas well
$ 840,000
Acquisition - miscellaneous oil and gas rights
$ 1,761,300
Solicitation management fee (maximum)
$ 232,074
Add to General Funds
$ 214,521
Maximum total
$ 3,867,895
B. Exercise of Series A Warrants - Maximum proceeds of $6,906,955
Use of Proceeds
Amount
6-23-20-3 W5M test and complete Potential Crossfield zone gas well
$ 495,000
4-1-19-2 W5M (Hartell South Crossfield gas pool)
follow-up development gas well to 4-13 Hartell
Crossfield gas discovery well
$ 1,350,000
Gas transmission line from Hartell South gas plant 21 miles north, three well gathering system
$ 3,087,000
One follow-up development well (Imperial operator)
$ 741,000
One follow-up development well (Berkley operator)
$ 1,020,000
Add to General Funds
$ 213,955
Maximum total
$6,906,955
C. Exercise of Series B Warrants - Maximum proceeds of $4,973,008
Use of Proceeds
Amount
Two additional follow-up development wells (Imperial operator)
$ 1,483,200
Three additional follow-up development wells (Berkley operator)
$ 3,000,000
Gas gathering system and gas pipeline to Quirk Creek gas plant
$ 440,000
Add to General Funds
$ 49,808
Maximum total
$4,973,008
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Good luck,
Mm_ |
