Admiral Bay Begins Drilling at the Swordfish Project in Eastern Kansas.TORONTO -- - Twelve well joint venture program initiated Admiral Bay Resources Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ADB (Apple Desktop Bus) A low-speed serial bus for connecting keyboards, mice and other input devices on Apple IIgs and Macintosh computers. Starting with the iMac in 1998, the ADB was superseded by USB. ) has entered into an agreement with Charter Capital Group ("Charter"), a private New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Corporation, to fund the drilling of 12 new wells at the Company's Swordfish swordfish, large food and game fish, Xiphias gladius, of the warmer Atlantic and Pacific waters, related to the sailfish. It is named for its sharp, broad, elongated upper jaw, which it uses to flail and pierce its prey of smaller fish, rising beneath a school Project in eastern Kansas. The wells will be drilled to evaluate seismic shot by Admiral Bay this summer and/or re-drill wells that had been plugged in the past due to a lack of an available gas market in the project area. The agreement calls for Charter to pay 100% of the drilling and completion costs on the first 12 wells and an acreage fee to Admiral Bay. Once Charter receives repayment of its drilling and completion costs from production, revenue from the wells will be shared on a 50/50 basis. The wells will be drilled on separate 320 acre blocks of land and drilling is expected to begin by mid-week. Charter Capital has the option to drill on up to 4,000 of Admiral Bay's 34,000 acres at the Swordfish project. Upon completion of the initial 12 wells, all subsequent drilling will go forward on a 50/50 basis. Admiral Bay will be the project Operator and retain a 100% interest in any pipelines built to the wells. The first two wells, the Lemert 8-7 and the McKenzie 14-15 will target the Mississippian Chat reservoir and core the coals and black shales to evaluate gas potential. The Lemert 8-7 is located on the top of seismicly defined structural closure that has on its flank, Admiral Bay's Lemert #1 well. If the structure has over 100 feet of closure, as projected by the seismic interpretation, the well will be taken to the Arbuckle to test for potential hydrocarbons. The well is expected to reach total depth in the Arbuckle at 760 meters (2,900 feet). The McKenzie 14-15 is a re-drill of a well that produced from the Mississippian Chat at less than 730 meters (2,600 feet), that had been plugged in the 1980's due to low oil prices. Upon completion of a successful well on an acreage block, additional drilling will go forward on forty acre spacing. This will result in 8 wells being drilled to the Mississippian, for each 320 acre parcel. Other conventional zones being evaluated are Layton sandstones, Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). Limestones, Marmaton Carbonates, Cattleman sandstone, Squirrel sandstone and Bartlesville Sandstone. Admiral Bay Resources Inc. (www.admiralbay.com) is a Canadian oil and gas exploration and development company focused upon its producing projects in the Cherokee Basin in south-east Kansas. Production has begun at the Company's U.S. conventional and coalbed methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. (CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter ) gas projects located in the Uintah, Cherokee and Appalachian Basins. The Company's Moose River Basin property is being explored for coalbed methane on over 250,000+ acres in the James Bay lowlands of northern Ontario. The Company is listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy of this release. Admiral Bay Resources Inc. (TSX VENTURE:ADB) |
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