N Sea drilling, only one of several projectsERG is an oil and gas exploration and development company with a diverse blend of high potential frontier exploration projects in the North Sea and North America.
Eternal Energy Corp. (OTCBB:EERG) is a publicly traded early stage oil and gas exploration and development company.
The Company will participate in the drilling of an exploratory test well on a 255 square kilometre (63,000 acres) prospect located within Quad 14 in the North Sea. A 3-D seismic survey appears to indicate significant potential in three prospective oil reservoirs.
Additionally, the Company has acquired an interest in Quad 41/42, a 970 square kilometre (240,000 acre) prospect. A 3-D seismic survey over a small portion of this natural gas prospect appears to show significant potential in at least three separate horizons.
Eternal Energy Corp. also owns a contractual right to earn a 50% interest in a very large (100,000 acre) Mississippian-aged, fractured shale project in the Great Basin of Nevada. The Company also has the right to earn an interest in 75,000 acres in another fractured shale project in the Great Basin.
Eternal Energy Corp. will participate in the exploration and development of a large oil and gas resource opportunity in Western Canada through a private Canadian company that was formed for the sole purpose of developing this project. Initially, EERG will own fifteen percent (15%) of the equity in that company. The remaining eighty-five percent (85%) will be held by individual private investors.
In addition, EERG will own a five percent (5%) overriding royalty interest on all leases and wells drilled in the project area by the Canadian entity or its assigns. EERG's initial equity ownership and the overriding royalty interest were acquired at no cost.
If wells are drilled in the project area to test the geologic concept, EERG will receive a $250,000 USD spud fee for each of the first eight wells drilled. To date, over 40,000 acres have been acquired in the project area. Any future financings would proportionately dilute all of the stockholders of the Canadian company.
EERG is now drilling the first North Sea well, but as shown above, that is only one of several projects.
Eternal Energy Corp. Commences North Sea Drilling Operations
3/27/2007
LITTLETON, Colo., Mar 27, 2007 (PrimeNewswire via COMTEX News Network) --
Eternal Energy Corp. (OTCBB:EERG) announces that drilling operations have commenced on the Company's Laurel Valley prospect located in the outer Moray Firth area in the U.K. sector of the North Sea and will take about 30 days to complete. The operator, Oilexco (45%), is drilling the well using the Sedco 712 propulsion-assisted, semi-submersible drilling vessel currently under contract.
The well will evaluate three prospective reservoir targets identified on a 250 square kilometer 3D seismic survey. These targets are located 24 kilometres south of the 639 million barrel Claymore field; 20 kilometres south of the 132 million barrel Scapa field; and 9 kilometres north of the 592 BCF Goldeneye field. These fields were developed on graben trends identified by seismic data. Based on a 3-D seismic survey, a similar graben exists over the Laurel Valley prospect.
EERG's partners in this project are Oilexco, International Frontier Resources and Gulf Shores Resources. Eternal Energy has a 9.1875% working interest in the Laurel Valley project.
The Laurel Valley well is the first of a two-well North Sea 2007 drilling program for EERG.