Sun Resources with Victoria Petroleum NL through their respective 100% owned USA subsidiaries consummated a farmin in April 2004 with Kestrel Energy Inc ("Kestrel") on Kestrel's 33,000 acres of BLM and state lease land and other assets (principally the Green Canyon and Dines pipelines having cumulative gas carrying capacities of 10 million cubic feet per day and a 3D seismic data base over half of the farm in area) to earn a collective 90% interest (subject to a 10% extra back-in right by Kestrel) over a period of 4 years.
The main thrust of the Joint Venture is exploration and development of indicated large (up to 1,207 billion cubic feet) in place CBM resources from CBM potential studies of the Upper Cretaceous and Early Tertiary age multi seam coals on the present leases. Acquisition of further offset Township sections to the immediate 47 Township sections and 7 part Township sections in the surrounding 376,320 acre (1,505 square kilometres) Area of Mutual Interest ("AMI") by further leasing and farmins will grow resource potential if target and gas producibility are confirmed.
VPE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
