The following is an extract from a Shareholders Update to all Northern Territory Oil shareholders received this morning, which will also be of great interest to BKP holders:
"AEC will back door list on the TSXV in Canada under the name PetroFrontier Corp. The listing is expected to take place in the next few weeks once shareholder meetings of the listing vehicle and the current capital raising are completed.
On the capital raising, we are informed that the market response in Canada has been particularly positive, so much so that AEC is now considering a much larger raising of C$25m. We expect the issue will be over-subscribed which augurs well for the after-market and the market value of the shares we are to receive.
A contract has been finalised for a drilling rig, to commence 1 February 2011.
PetroFrontier (AEC) has, as previously advised, a 4 well program; the well on EP127 is currently the second well in the program, so it should be drilled in early March 2011. However, as we will own shares in PetroFrontier, we have exposure to all 4 wells.
The long-awaited Ryder Scott resources report has been received by PetroFrontier. It contains resource estimates for EP's 127 and 128, as well as 103 and 104 in which PetroFrontier has a 50% interest. While we have not yet seen the full report, extracts from it we have seen show that its estimates fully accord with our long-held high expectations of our former holdings.
While the estimates are now in the public domain in Canada, we have, as a courtesy, offered Baraka Petroleum, as a listed entity, the opportunity to issue an announcement in Australia first.
An earlier Ryder Scott Report noted "strong technical similarities between the Arthur Creek formation and the unconventional oil targets within the Bakken Oil Shale play in Canada and USA". Given the potential larger size of the Australian play, we look forward to the upcoming drilling program with great interest".
BKP Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
