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Eldorado Exploration Announces Private Placement Business Wire - June 14, 2006 09:00
IRVINE, Calif., Jun 14, 2006 (BUSINESS WIRE) -- Eldorado Exploration Inc. (Pink Sheets:EDEX) announced today that the company has agreed to sell 4 million shares of its common stock to Stable Resources LLC at 10 cents per share for a total of $400,000. David T. Laurance, the president of Eldorado Exploration, and Clayton Fowler, managing partner in Stable Resources LLC, view this transaction as a positive opportunity for both companies. Fowler is also a director of Eldorado Exploration.
Stable Resources is a Lubbock, Texas-based independent oil and gas development company that also is a joint venture partner in multiple wells and leases with Eldorado.
Eldorado also announced that construction of the well pad site and associated location work has been completed on the Glasscock County, Texas well. Drilling is scheduled to start during the last week of June based on rig availability. The company also will push back the start date of its Mesa well in New Mexico, until the Texas well has been drilled and evaluated. It is expected that each well should take 10-12 days to drill to total depth.
Eldorado Exploration Inc. is an independent oil and gas company that utilizes a process called Passive Induced Polarization "PIP" to detect electromagnetic signals given off of some geological anomalies. In most cases a positive response indicates a hydrocarbon accumulation and a negative reading almost is always a dry hole. When used with the standard geological tools and methods, the PIP process enhances the odds of success for discovering oil and gas.
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Posted by: lowman In reply to: None Date:6/19/2006 2:51:56 PM Post #of 2657
BTW & FWIW (to those who might be new to EDEX):
EDEX has already paid for the drilling services of United Drilling, who owns 8 drilling rigs, and operates in Texas and New Mexico.
The second and larger of the two scheduled wells, the Mesa, in N.M., will pay EDEX 35% on the first well, and 75% on all subsequent wells (it was originally a 37.5% interest, but EDEX sold a one time 2.5% interest to VTYE).
Most recently, the Mesa well projection was conservatively estimated at 1TCF, but has been estimated by EDEX CEO to possibly be as large as 3TCF (10-26-05 EDEX PR), spread out over a network of PIP identified well targets.
The PR notes the potential of $10 Billion in revenues for EDEX. Granted, this is a 'projection', and probably a high one, but a possibility, nevertheless.
The numbers are simply too staggering to contemplate, when at a low pps such as present, but either way, the discovery of gas at the Mesa well (N.M. is the second largest NG producer in the U.S.) puts EDEX in a VERY sexy 'AMEX-y' or NASDAQ position.
If perchance, the field does in fact prove to be closer to the 3TCF, given the likelihood of rising NG prices, even $10B could be a conservative figure, overall and in the long run.
"ya can't win the lotto, if ya don't buy a ticket!"
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They were building a new facility which was to start producing in the end of June. That can only add to the bottom line if everything else is already paid for.
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