Business
Kroes Energy initiates exploration and development in western Canada; Provides update on Ukrainian situation
Kroes Energy initiates exploration and development in western Canada; Provides update on Ukrainian situation.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, March 30 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced\ntoday that in accordance with a new strategy announced late in 2005, it has\nentered into a Joint Venture agreement with a Calgary-based private oil and\ngas company to participate in an exploration and development program for\nshallow gas on that company's significant landholdings in a concentrated area\nof Central Alberta. It is expected that Kroes will participate in \n8-10 prospects over the next 12 months and will evaluate results and further\nactivity thereafter. The format of the arrangement is for Kroes to earn a\n25% interest in each prospect by paying a portion of land and/or seismic costs\nto date or a portion of new seismic if required. Kroes then will pay for\n25% of any drilling and completion activity. Two prospects have been selected\nto kick off the program and field activity is expected to commence in April.\nFred Callaway, President, said \"This agreement marks the beginning of a\nnew phase in the Company. The principals in the operating partner have many\nyears of technical experience with major companies in western Canada and, in\nthe past few years, with private start-up companies. This new strategy will\nprovide additional activity and value to the Company while helping to balance\nits portfolio of short and long term opportunities.\"\nWith respect to its Ukrainian operation, Kroes views its 45% ownership of\nKashtan Petroleum Ltd. as a major underpinning of its asset value and expects\nthat production will continue to improve with new drilling. The latest well,\nNo. 303, is at total depth after drilling through the K1 formation at a\ndeviation angle of 75 degrees and encountering 19 meters of pay. Construction\nof production facilities has been delayed due to inclement winter weather in\nthe region. Completion and testing should be completed in the next few weeks.\nThe political situation in Ukraine remains unsettled after the\nparliamentary elections held on March 26. The impact of the results still are\nnot clear, as it will be necessary for alliances to be made among parties in\norder to determine who will be appointed Prime Minister and what political\ndirection the new government will take.\nThe economic impact of the production tax imposed on liquids production\nby the Ukrainian government early last year has become ...