VERMILLION RIVER PROSPECT ACQUISITION? Acquisition of ~8% WI in...

VERMILLION RIVER PROSPECT ACQUISITION
? Acquisition of ~8% WI in Vermillion River Prospect
? High Impact Project targeting 110 BCFG & 3.3 million barrels condensate, up to 185 BCF and 5.5
MMBC.
? Well anticipated to spud in 1 - 2 months and take 100 days to drill
? The prospect lies between two major fields; Erath 1.2 (TCFG + 42 MMBC) and Abbeville (255 BCFG
+17 MMBC)
Acquisition of 7.83% working interest in Vermillion River
The Board is pleased to advise that it has
entered into a Letter of Intent to acquire a
7.83% working interest in the Vermillion
River Prospect which covers an area of 2,925
acres in Vermilion Parish, Louisiana and
operated by Walter Oil & Gas Corporation.
This prospect will be drilled to a total depth
of 17,500ft straight hole and is expected to
be drilled in the next 1-2 months. The
Company’s share of well costs is 9% of the
total which is estimated as net ~US$1.05m.
The project has similar traits and risks, and is
close to, the Company’s recent discovery and
success at La Posada 8 miles to the SE). The
Operator, Walter Oil and Gas, was a partner
in the La Posada discovery and is a highly
successful and professional private oil and
gas company based in Houston with onshore
and offshore gulf coast assets.