Easy money
Golden Dynasty closes financing; to drill in Australia
2006-03-24 09:07 ET - News Release
Mr. Douglas Scheving reports
GOLDEN DYNASTY CLOSES PLACEMENT, PREPARES TO DRILL
Golden Dynasty Resources Ltd.'s private placement, announced in a Stockwatch news release on Dec. 16, 2005, for 25 million units at six cents per unit, has now been completed and is being submitted to the exchange for regulatory approval. The unit consists of one share and one purchase warrant, allowing the holder to purchase an additional share at a price of 10 cents per share for a period of two years. A finder's fee is payable on part of the placement. The placement was oversubscribed and the company is refunding advances from certain subscribers.
The company continues to actively move forward with preparations for the upcoming drilling program in the Canning basin in the northwestern Western Australia. Australian Drilling Services is preparing to mobilize the drill rig from its Perth-based location as the particularly aggressive wet season experienced in the region is now on the decline. To date, the rainfall levels for the December, 2005, to February, 2006, period totalled 1,233 millimetres, which is far in excess of the usual rainfall traditionally experienced for the same period.
Taking advantage of this delay, recently appointed West Australian-based director and petroleum geologist David Archibald has been working up information extracted from the extensive database made available to Golden Dynasty by European Gas Ltd. (formerly Kimberley Oil NL) and from this database has identified a further four prospects designated as Rock Ridges-1, North Terrace-1, Helicon-1 and Backreef-1. These prospects have a potential size varying from two million barrels to 270 million barrels. The company is presently evaluating drilling these prospects immediately following the completion of the Boundary Southeast-1 well within the Boundary field. This well is scheduled for drilling in April.
Extracted from news release issued by the company on Oct. 26, 2004, related to EP12, John Yu, recognized petroleum consulting engineer, in his report conducted on the assets in June, 2004, summarized the following on the Boundary field potential.
The Intra-Grant formation, at 1,569 metres, has 249,836 barrels in place and the Anderson formation, at 1,569 m, has 414,542 barrels in place.
The report from Mr. Yu also highlights that, further to the development of the producing wells, is the development of the Norman fractured carbonate prospect and the Yellowdrum tidal flat porosity play. The yield potential original oil in place for the Norman prospect has been forecast at between 112 million and 280 million barrels of oil in place. For Yellowdrum, the calculation of original oil in place has been made at 300 million barrels.
Australian Drilling Services advised that, pending suitable weather conditions, it should be possible to commence earthworks at the Boundary Southeast-1 site within the next 14 days.