VANCOUVER, BC, Mar 06, 2009 (MARKET WIRE via COMTEX News Network) --
Consolidated Beacon Resources Ltd. ("Beacon" or "the company") (TSX-V: KBC) announces that it has entered into an agreement, subject to formal documentation, with Stealth Energy Inc. on approximately 40,000 acres of natural gas leases in Stillwater County, Montana.
Stealth Energy has selected drill locations and will incur all mobilization and demobilization charges. Beacon has committed to an initial three well drill program and can drill up to 15 wells in total during the first phase of the agreement. If Beacon fulfils the first phase of the agreement it will have the right to drill an additional 15 wells in the second phase of the agreement for a possible total of 30 wells.
For a successful well, Beacon and Stealth Energy have agreed to enter into a Joint-Operating Agreement, in which, Stealth Energy will be the operator of the well. Beacon will first recover all cost associated with the well; thereafter the parties will split the revenue after continuing production costs on a 50/50 basis.
Stealth Energy has successfully drilled and completed 2 natural gas wells. As a result, a connecting pipeline (12 miles to SAGA main distribution line) is near completion and formal agreements for transportation (SAGA) and sale (C.I.G. / Jefferson Trading) are executed and in place. All pipeline and drill work is being carried out by Big Snowy Resources, a private company which has extensive experience and specific knowledge of Montana and specifically the "Little Basin" field and the surrounding area.