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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (10719)	5/15/1998 12:17:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Sharpe Resources Completes US $10 Million Credit Facility SHARPE RESOURCES CORPORATION ME SYMBOL: SHO OTC Bulletin Board SYMBOL: SHGPF MAY 14, 1998 Sharpe Completes US $10 Million Credit Facility With EnCap Investments L.C. to Develop the Company's Matagorda and West Thrifty Projects HOUSTON, TEXAS--SHARPE RESOURCES CORPORATION is pleased to announce that its wholly-owned US subsidiary Sharpe Energy Company has recently closed its US$10 million credit facility with EnCap Investments L.C., a Houston, TX based investment bank. The use of proceeds will be to fully develop the company's 100 percent owned and operated Matagorda offshore blocks 582 and 483 gas projects and the West Thrifty waterflood project, located onshore in Brown County, Texas. The company is expected to commence drilling on Matagorda by June, 1998. Current plans include drilling and completing three new drill wells with potential for a fourth and two workovers of existing wells. The effort should result in bringing 8 production strings online at Matagorda over the next 3-4 months as part of the initial phase of development of the 582/444 and 483 blocks within the 5,000-acre property that includes 10 offshore leases. This effort will access 6 previously undeveloped gas reservoirs, productive gas sands that have produced elsewhere on the property. Sharpe will develop from 2-4 productive gas sand reservoirs in each of the new drilled wells. Several of the wells are to be dual completions. Production projections, which are based upon similar previously produced reservoirs on the property, indicate that the production for each string should average approximately 2 MMCFPD, if all wells are completed successfully. April gas prices for current gas production at Matagorda are $US2.27/MMBTU (MCF). The West Thrifty Unit development program will include drilling or converting up to 24 producing oil wells in the Fry Sandstone where it has repressurized the 1,300' deep reservoir by injecting water for the last 4 years. The initial development of the property will focus on the southern portion of the field. A production test program will commence in late May-early June, 1998 Development of these projects is expected to have a major impact on the company's 1998 cash flows. Sharpe Resources Corporation cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to, volatility of gas and oil prices, product demand, market competition, imprecision of gas and oil estimates, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company.