UNITED COMPASS RESOURCES LTD.
BLAINE, Wash., Aug. 11 /PRNewswire/ -- United Compass Resources Ltd. is negotiating to purchase some producing oil and gas properties in the Central Alberta, Canada area. These properties are partially developed with various interests in eight gas wells and 11 oil wells producing a cash flow of approximately $50,000.00 (CDN) per month. Reworking some of the existing wells and drilling three to six development wells on one of the properties could increase the cash flow to exceed $150,000.00 (CDN) per month. An independent engineering report is in progress to determine the value of the properties and we anticipate concluding a purchase agreement by Sept. 1, 1993. "Compass," through its wholly owned subsidiary, Oakmont Resources Inc. has acquired 100 percent interest in two diamond exploration properties located in the George Creek area of the State Line Kimberlite District, Larime County, Colo., and the Leucite Hills, Northeast of Rock Springs, Sweetwater County, Wyo. At George Creek, Colo., test work done on Kimberlite Dikes occurring in close proximity to the Oakmont holdings, have shown the highest diamond grades found to date in the State Line District. It is reported that 3,029 tons of Macrocrystic Kimberlite Breccia yielded 89,155 stones with grades varying from 0.181 to 1.351 carats/ton. The Geologic environment at the Oakmont properties appears to be identical to the property where the known diamondiferous dikes occur. Oakmont's properties at Leucite Hills, included several exposures of Unique Lamproite Diatremes and flows that are very similar in chemistry and physical characteristics to the seven known Diamondiferous Lamproite occurrences found on five different continents. The Argyle Mine in Australia is one such Lamproite occurrence and is, reportedly, the largest and highest grade diamond-bearing pipe in the world. To date there has been very little exploration activity for diamonds in the Leucite Hills area. The company intends to seek Joint Venture partners for its diamond properties. -0- 8/11/93 /CONTACT: Louis P. Lees, president of United Compass Resources, 206-332-4600/ (UCR.)
CO: United Compass Resources Ltd. ST: Washington IN: OIL SU: TNM
BP -- LA018 -- 1731 08/11/93 13:48 EDT
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|Date:||Aug 11, 1993|
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