Hi ML. Due to my increased schedule I missed having a conversation with Mr. Dame Friday so I don’t know what the details are but in an e-mail to me he stated “progress has been made” at Pincher Creek. I don’t want to guess but it could be related to one or more of the agreements being signed, but this is just a guess. I’ll try and reach him early next week and find out.
The new June 30th financials and MD&A are now on SEDAR for your perusal. Note that the new CFO signed off on this. Since I’m posting I wanted to point out what part of the new private placement will be used for. Starting with Pasquia Hills:
The Company has the following minimum annual work commitment payments remaining:
Payable by October 1, 2009 - $1,000,000
Payable by June 1, 2010 - $1,000,000
Payable by June 1, 2011 - $1,500,000
They have actually paid $1,500,000 towards the oil shale project to this point. They will also pay a further $500k due by October 1st from the current private placement towards the program and will get an extension for the remainder from the partners as they did during the CTO and market meltdown. Turner valley will receive about $105k from the private placement.
The remainder will be used for the following:
"The proceeds from the private placement will be used to pay a portion of
the Corporation's 2009 farm-in commitments for its Pasquia Hills oil shale
project, including the preparation of a pre-feasibility study and the oil
shale bulk sampling and processing program. The Offering proceeds will also be
used for oil and gas acquisitions and well re-completion costs and for general
corporate purposes."
They expect to generate significant oil revenues to help offset dilution (this is the nature of virtually all Venture companies with many having no hope of any production) from conventional oil production from Turner Valley upon the needed work to bring it online and oil production starting with Pincher Creek, which is still targeted for September. Noel drilling and re completion I believe at this point may be put on the backburner during this time of low natural gas (shut in) prices. That though is subject to change. The Turner Valley news release when it comes out will explain the details of that project.
rich47
