NHD Q2 MD&A This is an interesting tidbit pointed out by Marnibe on the WL board. It begins on the last paragraph of page 1...
Bougie – Trutch Slave Point Natural Gas Property
During fiscal 2005 the Company participated in the drilling of a Slave Point Natural Gas
Test Well in Northeastern British Columbia. The cost of drilling was $1,425,000. The
operator was Shell Canada who has a 50% interest in the project. As a result of this
drilling the Company has earned a 17.5% working interest in twenty-six square miles
from the top of the Slave Point to the Basement. The test well is located in a prolific gas
-2-
producing region of Northeastern British Columbia which has seen several natural gas
discoveries.
The Company also paid $323,959 pursuant to cash calls issued by Focus Energy Trust
(“FET”) for the drilling of two shallow wells. FET has acquired from Shell Canada a 35%
interest in the rights to the shallow zones. Drilling of the two shallow wells was a
success and the Company is waiting for flow rate details. The shallow wells have been
classified as tight holes due to the discovery of previously unknown structures. The
Company is expecting to meet with FET late in the summer of 2006 to discuss the
winter drill program which should include the drilling of at least two more shallow wells.