Company Data | Overview | News Update | Chinese
| Address: |
Suite 1730, 355 Burrard Street |
| Tel No.: | (604) 331-1757(Corporate) |
| Fax No.: | (604) 669-5193 |
| Investor Relations Toll Free No.: | 1-888-756-0066 |
| Web Site: | www.derekresources.com |
| Corporate Email: | info@derekresources.com |
| Investor Relations Email: | invest@derekresources.com |
| Traded Market: | CDNX |
| Traded Symbol: | DRS |
| Outstanding Shares: | 28,782,288 |
| Fully Diluted Shares: | 53,951,444 |
| Market Capitalization: | C$24,177,122 |
| 52 Week High: | $1.18 |
| 52 Week Low: | $0.45 |
| Present Price: | $0.50 ( 01/03/2001 ) |
DEREK RESOURCES CORPORATION OVERVIEW
The primary focus of Derek Resources Corporation is the
establishment of new oil production through re-entry into significant
reservoirs whose reserves were previously uneconomic to
recover through
conventional means. Derek realizes this objective by embracing relatively
new, yet proven, innovative technologies such as Steam Assisted Gravity
Drainage (“SAGD”), Gas Assisted Gravity Drainage (“GAGD”) and low
temperature oxidation (“LTO”).
Derek is currently employing SAGD technology at their
pilot LAK Ranch Property, located in Eastern Wyoming. The LAK Ranch Property
covers 7,468 acres of privately optioned and federally leased ground
underlain by the Powder River Basin, a historically important oil producing
structure. Previous exploration activities at the LAK Ranch Property have
been
conducted by Texaco, Conoco, Parent Oil, Mapco and Surtek. Surtek
produced an in-house resource estimate of 100 million barrels of oil on the
LAK Range property. To date, Derek has completed the initial well pair for
their Pilot Plant, on-schedule. Materials for construction of the Pilot
Plant are now being delivered to the site, with steam injection and initial
production targeted for early 2001. Initial production at LAK will enable
Derek to move significant portions of the estimated resource into the
probable and proven categories. To-date, in excess of US$2.3 million has
been spent at the LAK Ranch Project. Derek has a 75% interest in the project
and is the sole project operator.
On October 30, 2000, Derek acquired an option to purchase
a 51% interest in the 1,880 acres Morton Project, located in Converse
County, Wyoming. Like the LAK Ranch Project, the
Morton is located in the
Powder River Basin. Over the last 15 years, 25 wells have been drilled on
the project, of which 17 are still producing. Based upon past drilling and
geological interpretation, Dr. Paul Trost, a geologist and geochemist,
estimates that there are some 35 million barrels of oil in place.
Derek Resources is a debt free company. The management and field engineering teams have extensive experience in the financial arena as well as the oil patch. Dr. Paul Trost, B.Sc., Ph.D., Vice President of Operations of the U.S. Subsidiary, is a recognized industry expert in oil recovery. Dr. John K. Donnelly, Ph.D., P.Eng., Vice President of Engineering and Director, has worked extensively with Shell, Chevron, BP Canada, Blackrock Ventures and Alberta Energy, among others. Founder, CEO and President, Mr. Barry Ehrl, and CFO, Mr. Frank Hallam, B.B.A., C.A., have each established credentials working in finance and other aspects of production-stage and development-stage resource companies.
Industry analysts confirm that the long-term outlooks for the global oil and natural gas sectors are quite promising. At a time when reducing the dependence on overseas oil is critical to North America, Derek is now working to successfully recover oil reserves from their Wyoming assets. During a recent conference call, CFO, Frank Hallam, emphasized that the LAK Ranch Project is a development project, rather than an exploration play. Indeed, it is known that oil is there. Initial test wells and the now-installed production well pair have confirmed Company expectations about the reservoir. The key here is for Derek to confirm that their applied technologies can exploit their assets in a profitable manner. Company engineers are encouraged by all results and progress to date.
For additional information, please refer to Derek's web site at www.derekresources.com.
On February 21, 2001, Derek Resources Corporation announced that it will be ready to commence steam generation and injection at its LAK Ranch Oil Project in Wyoming, as soon as natural gas is available from the company’s pipeline.
The company’s natural gas pipeline has been installed with all boring under roadways and railways complete. Also, Project operator, Mtarri, Inc., of Golden, Colorado, reports that the second well being drilled on the Morton Oil Project has reached a depth of 830 feet and is planned to reach a total depth of 1,750 feet.
On February 12, 2001, Derek Resources Corporation reported that its LAK Ranch Oil Project in Wyoming is now underway. The Steam Assisted Gravity Drainage (“SAGD”) plant is essentially complete.
Testing procedures on the plant are almost complete. Several valves remain to be installed and computer programming to modify the software required to operate and monitor the plant is still to be completed.
On January 23, 2001, Derek Resources Corporation reported that final preparations are underway on the Steam Assisted Gravity Drainage (“SAGD”) plant being constructed at its LAK Ranch Oil Project in Wyoming. Operations at the plant are scheduled to begin February 12, 2001.
A process-commissioning meeting is scheduled for February 5th in Denver, Colorado.
On January 18, 2001, Derek Resources Corporation reported that drilling has now commenced on the Morton Oil Project. Project operator, Mtarri, Inc., of Golden, Colorado, reported that the first well on the Morton Oil Project has been spudded. This well will be part of an LTO improved oil recovery pilot test facility to be conducted within a 40 acre parcel located in the existing, 2000 ft. deep Morton oilfield.
On January 9, 2001, Derek Resources Corporation reported that work is progressing well on the Steam Assisted Gravity Drainage (“SAGD”) plant being constructed at its LAK Ranch Oil Project in Wyoming.
Final installation and assembly procedures including fabrication, welding, electrical and instrument component installation and equipment testing are underway. It is anticipated that these activities will require several more weeks to complete.
On January 5, 2001, Derek Resources Corporation announced that in addition to its listing on the Canadian Venture Exchange, its common shares are now traded on the Over the Counter Bulletin Board, effective immediately, under the symbol DRKRF.
On December 20, 2000, Derek Resources
Corporation reported that it has now met the earn-in requirements of the LAK
Option Agreement whereby the Company may acquire an undivided 75% working
interest in the leases comprising the LAK Ranch Oil Project. A formal
notice of earn-in has been delivered to the property vendor.