GRC deepens well to 1,000 m - URP- 40 % equity interest in GRC
posted on Jan 17, 2009 01:07PM
Advancing base and precious metals projects: McFauld's Lake - Sudbury Basin - Nova Scotia
Mr. Michael Coulter reports
UNITED REEF UPDATE ON GENERAL REEF INVESTMENT
United Reef Ltd. has been provided with a report from General Reef Corp. (GRC) updating GRC's recent drilling activity and other corporate matters.
United Reef owns a 40-per-cent equity interest in GRC.
GRC has a farm-in and option agreement with EnCana Oil & Gas Partnership for certain farm-in rights on 40.6 sections (25,000 acres) of freehold petroleum and natural gas rights in the Warner area of Southern Alberta.
During October, GRC re-entered and deepened its well 16-22-5-21W4, which was originally spudded in December of 2007, to a total depth of 1,000 metres. The well penetrated a sequence of stacked pay in several different Cretaceous-aged sandstones. The deepest zone penetrated is the Bow Island formation, which is gas charged. The well also encountered gas uphole in the shallower Milk River formation, Belly River formation and the Blood Reserve formation. Gas was identified from well logs and gas shows were encountered during the drilling of the well. The well penetrated a 4.5-metre-thick, gas-charged sandstone with 15-per-cent porosity in the Bow Island formation, as well as gas-charged sandstones with greater than 16-per-cent porosity in the Milk River, Belly River and Blood Reserve formations. GRC is presently evaluating its options for testing and completing the zones so that they can be tied in to an existing gas gathering system that is approximately two kilometres away from the wellhead.
Chris Tesarski has recently been appointed president, chief executive officer and a director of GRC. Mr. Tesarski was most recently chief executive officer of Arrow Energy Ltd., a public, Calgary-based junior oil and natural gas exploration and production company, listed on the TSX Venture Exchange. Prior to his tenure as chief executive officer of Arrow Energy Ltd., a position he held from July, 2006, to July, 2008, he was principal of FWDStep Resources Group, a boutique mergers and acquisitions firm dedicated to establishing and growing junior energy firms. Mr. Tesarski's 25-year career in the oil and gas industry has provided him with broad industry experience, including joint venture, land, marketing, infrastructure management and development. His career has seen him work for several firms, including BP Canada, Talisman Energy Inc., Husky Oil, EnCana Corp. and Enerplus Resources Fund.
Paul Jeffrey, BBA, LLB, has also agreed to join the GRC board of directors. Mr. Jeffrey is a founding partner in the law firm Jeffrey, Twyman LLP, and has practised in the areas of energy and environmental regulatory law for over 20 years. Prior to founding his own firm, he practised with a leading national law firm following an in-house role as vice-president of law, regulatory for TransCanada PipeLines.
GRC is managed by Mr. Tesarski, Paul MacKay, executive vice-president, and Ron Hutzal, vice-president of operations. Douglas Brown has resigned as an officer and director of GRC to pursue other interests on a full-time basis.