Post by Franko10 ™ on Feb 21, 2005 17:41:46 GMT -5
GOLDEN ARCH RESOURCES LTD.
8930 OAK STREET, VANCOUVER, BC V6P 4B7
(604) 266-9910 1-800-661-0091 Fax: (604)266-5000
NEWS RELEASE
Symbol: GAI (CDNX) Exemption 12g3 - 2(b)
O.T.C. GARC-F SEC File # 82-659
8930 OAK STREET, VANCOUVER, BC V6P 4B7
(604) 266-9910 1-800-661-0091 Fax: (604)266-5000
NEWS RELEASE
Symbol: GAI (CDNX) Exemption 12g3 - 2(b)
O.T.C. GARC-F SEC File # 82-659
Barnett Shale # 7 Wimberly on line. Drilling to begin on two offset wells in 10 days
Vancouver B.C., June 4, 2001: Further to the Company's news release of May 14, 2001 Golden Arch Resources Ltd. is pleased to report the #7 Wimberly well, located in Jack County Texas, is now on line selling approximately 300 MCF of Natural Gas per day. Production tubing was installed on June 1, 2001. A gas sales line was hooked up, and, the well flowed immediately.
The Cumming Co., of Forth Worth Texas, operates the #7 Wimberly and several other recently completed Barnett Shale wells in the vicinity. Cumming considers the #7 Wimberly to be a significant Barnett shale discovery, and, within 10 days the partners will commence drilling two offset wells to further develop the Wimberly acreage. Golden Arch recently negotiated certain rights to increase its working interests in the play to 25% and beyond. The company currently holds a 4% Working interest in the #7 Wimberly and plans to increase its interests on a "stair step" basis consistent with increasing internal cash flows, and outside financing.
In an updated status report dated June 1, 2001 Project Geologist, Mr. Keith Shirley of Fort Worth Texas, advised Golden Arch most of the prospective new acreage offsetting the #7 Wimberly and Barnett shale wells surrounding on 3 sides should be considered as an infill drilling project. Up to forty wells could be drilled within the area, which, in addition to the Barnett shale, is known for its multiple pays.
Golden Arch in conjunction with Cumming had been acquiring leases contiguous to the #7 Wimberly which had been previously thought to be highly prospective. Contingent to the success of the next two wells, the partners are gearing up for a 25 well development program for the newly discovered field. The drill program will proceed at a rate of 2.4 wells per month.
The Barnett Shale field is located about 40 miles northwest of Fort Worth Texas, ranges in depth from 6,000 to 8,000 feet and averages 550 feet of pay. Based on a 1998 forecast prepared by the U.S. Geological Survey, this extensive gas accumulation was estimated to have an overall 10 trillion cubic feet of recoverable reserves, the equivalent of a 1.67 billion barrel oil field. The use of light sand fracture technology - forcing massive amounts of water carrying small amounts of sand into the formation - is driving the development rush in the Barnett. This new technology reduced total well costs by 20 percent, and more importantly, made it possible to expand the limits of the Barnett Shale field. Barnett Shale production was first established in the Newark East Field in Wise and Denton counties, where it grew from less than one billion cubic feet of gas from 25 wells in 1985 to 19.2 billion cubic feet from 306 wells in 1995. During the past five years, production has more than doubled to 189 million cubic feet of Natural Gas per day from over 500 wells. Current expected recoveries amount to only 8% of the actual gas in place.
Golden Arch is presently in negotiations with other companies for participation in this exciting low risk, high reward, world-class shale gas production play. In connection with the syndication and development of the company's interests, Golden Arch has retained the services of Mr. Malcolm Bell & Associates. In the past Mr. Bell operated a large geological consulting service company in Vancouver B.C. and is quite familiar with the syndication of regional plays. The company has also reached an agreement with Dale Paruk & Associates to provide investor relation services to the company. Compensation to be paid to both parties is subject to regulatory policies and approval of the CDNX.
For further information on this news release please contact Richard J. Watson 1-800-661-0091,
On behalf of the Board of Directors of Golden Arch Resources Ltd.
"Richard J. Watson"
Director