http://www.oilandgasonline.com/content/news/article.asp?docid={CA280B3F-6C0A-11D6-A789- -------------------------------------------------------------------- Australia's Orchard Petroleum Begins Trading On Asx 5/24/2002 -------------------------------------------------------------------- PERTH, May 24, 2002 (AsiaPulse via COMTEX) -- Oil and gas explorer Orchard Petroleum Ltd (ASX:OPL) began trading on the Australian Stock Exchange today after successfully raising A$11.48 million (US$6.37 million) to fund exploration in the US. -------------------------------------------------------------------- Orchard was formed after listed company Games R Us entered into a conditional agreement with US-based oil and gas explorer Nahabedian Exploration Group (NEG) in March to participate in the drilling of five oil and gas exploration prospects in California. -------------------------------------------------------------------- Games R Us was suspended from trading on March 27 as it flagged the company's name change to Orchard Petroleum and the recomposition of the board. -------------------------------------------------------------------- Orchard then raised A$11.48 million (US$6.37 million) through the issue of 20 cent shares with the funds used to farm in to the NEG prospects and for working capital. -------------------------------------------------------------------- Orchard's shares opened today at 23.5 cents. -------------------------------------------------------------------- The stock touched an intraday high of 26 cents but at 1258 AEST had slipped back to 25 cents on turnover of 1.75 million. -------------------------------------------------------------------- Orchard said NEG had explored the five oil and gas exploration prospects with one target, Ming, showing a prospective upside recovery of 200 million barrels of oil. -------------------------------------------------------------------- Orchard will own 12.5 per cent of Ming and as well as a 50 per cent working interest in another exploration well, Santiago, which has the potential to contain 20 million barrels of recoverable oil. -------------------------------------------------------------------- Drilling of all sites is scheduled to be completed by late October 2002 at an estimated capital cost for Orchard's contribution of US$3.3 million (A$5.95 million). -------------------------------------------------------------------- Orchard executive director Stephen Warrener said the high success rate of exploration wells from the two basins, ranging up to 40 per cent, and the early exploration results had given the board confidence to participate in the drilling on all five prospects. -------------------------------------------------------------------- He said through the NEG association, Orchard had gained access to 7,000 acres covering the prospects, all adjacent to known production. --------------------------------------------------------------------
OPL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
