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Opal Energy Corp (the “Company”) (OPA:V) announced today
progress in expanding a Chinese component to its exploration strategy to
become a premier developer of giant Texas onshore natural gas resources.
Texas Giants Strategy Expands to China
The Company announced that it has made substantial progress in obtaining
initial funding components from significant multinational oil and gas
companies in China to expand its strategy to explore and develop giant
natural gas prospects along the South Texas Gulf coast onshore. The
Company has obtained positive responses from key management personnel with
two separate multinational oil and gas companies in China. If
successful, this funding arrangement would move the plans the Company has to
drill and test its Orion prospect in South Texas which has undiscovered
resources of approximately 4 trillion cubic feet (TCF).
Additionally, the Company also announced that it is continuing
discussions to enter into a production sharing agreement with one
multi-national oil and gas company from China for a block of exploration
acreage in the South China Sea which covers over 2,000 square
kilometers. This potential additional exploration block would position
the Company to test undiscovered resources of over 5 TCF of natural
gas. This block is located nearby an existing gas sales line to Hong
Kong in the event exploration is successful.
Undiscovered resources are those quantities of oil and gas estimated
on a given date to be contained in accumulations yet to be discovered. There
is no certainty that any portion of the undiscovered resources will be
discovered and that, if discovered, it may not be economically viable or
technically feasible to produce. In reference to the estimates of
undiscovered resources included herein the qualified estimator is Jesse Allen,
P.E., an employee of the Company. The potential exploration block in the
South China Sea would allow the Company to apply its expertise in deep
drilling with high temperature and high pressure situations pursuant to the
conditions anticipated in this target block.
Commenting on the recent events, Opal CEO Ron Oligney said, “We are pleased with progress of our efforts
in China to both bring significant funding for the Orion Prospect and to
secure exploration rights in the South China Sea. Additionally, these
opportunities for our shareholders to receive the benefit of these
substantial partnership relationships are very exciting.”
Both of these initiatives are ongoing and are expected to be concluded
in the next few months. The Company cannot assure the outcome of these
efforts for either the funding of the Orion prospect or the exploration block
in the South China Sea.
Opal Energy
Opal Energy Corp., through its U.S. subsidiary Opal Energy Inc., offers an
aggressive, disciplined and results-oriented vehicle to invest in the U.S.
Exploration and Production “E&P”
sector with a particular focus on natural gas exploration targets in South
Texas. The business strategy is to build asset value through drilling,
growing a production platform upon which will be superimposed some potential
high value exploration opportunities. Drilling inventory will be continuously
enhanced by the implementation of a series of proprietary 3-D seismic shoots.
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