posted on Oct 15, 2008 02:53PM
October 14, 2008: Consolidated Beacon Resources Ltd. ("Beacon" or "the company") (TSXV:KBC) is pleased to confirm that, after the processing and interpretation of its recently acquired 3-D data, the operator has licensed the first two well locations in the 2008 drilling program north of Bakersfield, California. The locations for these two wells are being prepared for drilling as negotiations continue with the drilling contractor. The drilling program will commence immediately upon the availability of a suitable rig.
The Company is encouraged with the developments for the San Joaquin project, and is exploring opportunities in increasing its interest in the project and other potential projects in the San Joaquin Basin. Beacon continues to maintain and expand its land position in Southern California.
Beacons Corporate Headquarters has been moved to Vancouver, B.C. while the Operating Headquarters remains in Calgary, Alberta. The Company is also pleased to retain the services of Mr. Richard Hawes, P.Geol., for the evaluation of potential oil and gas projects.
San Joaquin Overview
Since March 2006, Beacon has been engaged in the business of acquiring medium and heavy oil prospects in the San Joaquin Basin, California in the San Joaquin East Side Project Joint Venture, (the "San Joaquin JV") on and around the Bakersfield Arch.
The San Joaquin Joint Venture has focused its initial efforts on a 10-mile wide north-south exploration fairway between the Round Mountain and Mount Poso oilfields to the east, the Kern Front and Poso Creek oilfields to the west, and the Kern River oilfield to the south.
Beacon's partners in the San Joaquin JV are Daybreak Oil & Gas Inc., California Oil & Gas Corporation, Calstar Oil & Gas Ltd. and the technical team that originated the project. A committee has been assembled from the various partners and is responsible for the overall management of the San Joaquin JV.
The San Joaquin Basin of South Central California is targeted for oil exploration for several reasons which are:
1. The East Slopes of the San Joaquin Basin are a very prolific oil-prone area, with approximately 13,000 historic wells.
2. There has been no significant exploration on the eastern flanks of the San Joaquin Basin since the 1960's.
3. Older production methods are still employed; newer production techniques should improve rate of production.
4. The basin is very close to major markets, and has infrastructure and services in place ~ 21 miles to three oil refineries, capacity 116,000 BOPD.
5. USGS recently (2007) estimated remaining undiscovered resources in the San Joaquin Basin:
· 393 million barrels undiscovered oil
· 1.7 Tcf undiscovered natural gas
· 59 million barrels undiscovered natural gas liquids
Private Placement Update
Consolidated Beacon Resources Ltd., on June 13, 2008, announced a non-brokered private placement of up to 20,000,000 units at a price of $0.05 per unit for total proceeds of up to $1,000,000 will proceed accordingly. Ten percent (10%) cash will be paid and ten percent (10%) agent's warrants will be issued in connection with the private placement, subject to the approval by the TSX Venture Exchange.
Up to 20,000,000 units will be issued as non flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.10 per share for the first year, and $0.15 per share in the second year.
The proceeds of the private placement will be used for general working capital.
About Consolidated Beacon Resource Ltd.
Consolidated Beacon Resource Ltd. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development in Canada and the United States. The Company's shares trade on the TSX Venture Exchange under the symbol KBC.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This release may contain or be deemed to contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual events or results. Readers are referred to the most recent documents filed by the Corporation on SEDAR (www.sedar.com), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Corporation undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:
Consolidated Beacon Resources Ltd.
Richard J. Hawes, P. Geol. Email: [email protected]
Telephone: (403) 221-8392 or visit the Company's website at http://www.consolidated-beacon.com
Archie Boyce, Director Email: [email protected]
Telephone: (604) 683 5445 ext 227
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