Meteor Creek Resources Inc.
Company Data | Description
| The Bear River Prospect | Economic
Impact | Market | Ownership
Financing | News Update
|
Chinese
| Address: | 8 King Street East, Suite 1705 Toronto, Ontario M5C 1B5 |
| Tel No.: | (416) 363-3177 |
| Fax No.: | (416) 815-0160 |
| Web Site: | www.meteorcreek.com |
| Email: | dfisher@meteorcreek.com |
| Contact Person: | David Fisher |
| Position: | Vice President |
| Traded Market: | CDNX |
| Traded Symbol: | ONG |
| Outstanding Shares: | 13,279,253 |
| Public Float: | 7,000,000 Est. |
| 52 Week High: | $ 1.20 |
| 52 Week Low: | $ 0.40 |
| Present Price: | $0.86 (25/04/2001) |
Meteor Creek Resources Inc. is a publicly traded Canadian corporation engaged in oil and gas exploration. Its natural gas exploration project is the Bear River Prospect located in the eastern half of Canada’s Prince Edward Island. With the exception of the high Arctic, this has the potential to be one of the largest on-shore deposits in Canada.
The Bear River Prospect
The Bear River Prospect is located with a 77,226-hectare (175,984-acre) permit near Souris, PEI. In early January 2001, Meteor Creek announced that it has begun the process of “spudding” a 12,000-foot deep exploratory natural gas well in Bear River and the process is proceeding according to plan. Spudding is an industry term used to describe the initial stage of drilling.
The potential for a significant natural gas find in this area has been known for some time. Based on seismic data and
thorough independent analysis, Meteor Creek anticipates finding reserves in excess of one trillion cubic feet (TCF) of natural gas. If successful, one TCF of natural gas would equate to meeting the electricity needs of one and half million homes for the next 20 years.
A discovery of this magnitude would be significant at any time, but it is particularly important today considering the current cost of natural gas. Should Meteor Creek Resources be successful, The Bear River Prospect will undoubtedly put the Province of Prince Edward Island on the energy map.
Economic Impact
The Government of Prince Edward Island and the company are optimistic about discovering an environmentally friendly
source of energy on the Island. In addition, Meteor Creek is committed to local sourcing, whenever possible, of its material and labour resources. The company estimates creating approximately 40 jobs in Bear River, PEI during the short-term 40-50 day exploration stage now underway. If successful, the number of permanent jobs could eventually increase to nearly 200.
And the Government of Price Edward Island has clearly demonstrated from the onset its support for Meteor Creek and the project.
It was recently announced that both the government and the company had successfully concluded a royalty agreement regarding the Bear River Well. The terms of the agreement include a royalty holiday on the first 10 billion cubic feet of natural gas extracted or five years, whichever comes first. Based on long term industry forecasts the level of savings of these royalty payments is expected to be approximately six million dollars.
Market
High natural gas prices throughout North America are the result of increased demand for natural gas and they are expected to continue to grow with the conversion of manufacturing and electrical co-generation plants to an environmentally friendly energy source, such as natural gas from coal.
Ownership
Meteor Creek Resources Inc. is a public company that trades on the Canadian Venture Exchange. The warrant also trades under the symbol ONG.WT on this exchange.
Financing
The company has completed a prospectus stock offering for gross proceed of CDN $4,500,000. The funds are being used for general corporate purposes and for drilling the exploratory natural gas well in PEI.
News Update
Bear River Update
On April 16, 2001, Meteor Creek Resources Inc. (the “Company”) announced that it has reached the contract depth of 3,680 metres at its Bear River # 1, P.E.I. exploration gas well.
The logging of the well was completed on the weekend and the setting of
casing was approved after consultations with the Company’s consulting engineers. Testing of the well will commence shortly and is anticipated to be completed in the next three to four weeks.
The Company also announced that it is currently negotiating a private placement with arm’s length investors of up to 4 million common shares of the Company at a price of CDN$1.00 per share. Proceeds from this financing would be added to working capital.
For further information, please contact Dave Fisher, Executive Vice-President, at (416) 363-3177.