VANCOUVER, Aug. 16 /CNW/ - Grove Energy Limited ("Company") (TSX-V & AIM:
GRV) the oil and gas exploration company with assets in Europe and the
Mediterranean Margin has completed the farmin with Sterling Resources (U.K)
Ltd ("Sterling") under which Grove will acquire a 25% interest in Block 42/13
located in the UK Southern North Sea Gas Basin. The approval of the UK
Department of Trade and Industry (DTI) has been obtained. Sterling will remain
operator.
Grove will earn its interest by paying 50% of the turnkey dry hole costs
of a well to the Carboniferous formation. Testing costs will be paid by the
parties according to their working interests.
Studies completed by the operator's consultants confirm the potential for
a large structure within which a 400 foot gas column was proven by a well
drilled in 1997. The study further shows that the discovery well had
significant well bore damage and that an undamaged well should have produced
rates of natural gas on test ranging from 10 to 25 MMscf/d.
The operator is now soliciting turnkey drilling proposals for a jack up
rig and is commencing the application process necessary for pre-drilling
approvals from the various regulatory bodies.
Grove is committed to building a diversified exploration, appraisal and
development portfolio of oil and gas assets in Europe and the Mediterranean
Margin. Grove's principal business strategy is to generate a sustainable cash
flow as quickly as possible. Grove's assets are in proven hydrocarbon
provinces, close to existing discoveries and infrastructure, in regions that
are net importers of hydrocarbons with high domestic hydrocarbon prices and in
countries with stable legal and political environments.
GROVE ENERGY LIMITED
Per "Glenn Whiddon"
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GLENN R. WHIDDON, CEO
Some of the statements contained in this release are forward-looking
statements. Forward looking statements include but are not limited to,
statements concerning estimates of recoverable hydrocarbons, expected
hydrocarbon prices, expected costs, statements relating to the continued
advancement of the Company's projects and other statements which are not
historical facts. When used in this document, and on other published
information of the Company, the words such as "could," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions are forward-
looking statements. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable, such statements
involve risk and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Various
factors could cause actual results to differ from these forward-looking
statements including the potential for the Company's projects to experience
technical or mechanical problems, geological conditions in the reservoir may
not result in a commercial level of oil and gas production, changes in product
prices and other risks not anticipated by the Company or disclosed in the
Company's published material. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks and
uncertainties.
Neither the TSX Venture Exchange nor the AIM Market operated by
London Stock Exchange plc approves nor disapproves of the information
contained herein.
The information contained herein does not constitute an offer of
securities for sale in the United States, United Kingdom, Canada, Japan
or Australia.
