News
Mr. Byron Coulthard of Bonanza reports
Bonanza Resources Corp. has signed a letter of intent to acquire a 25-per-cent interest in a 92-mile gas-gathering system owned by Central Gas Gathering Co. LLC (CKGG), a wholly owned subsidiary of Saxon Oil Co. Ltd. CKGG currently owns 100 per cent of the gas-gathering system located in central Kansas. The transaction will close on or before July 27, 2007. Bonanza will also be a continuing working interest partner in Saxon's exploration and production activities in Kansas. "Bonanza is very excited about partnering with Saxon in Kansas. Saxon's strategy of combining upstream drilling and production activities with midstream gas-gathering and processing operations opens up a number of unique opportunities for us to pursue," said Byron Coulthard, president and chief executive officer of Bonanza.
Bonanza views Kansas as an attractive growth area. Historically, Kansas ranks fith among states in the United States in cumulative production with over 30 trillion cubic feet of gas and over 6.6 billion barrels of oil produced to date. There is still significant oil and gas reserves throughout Kansas. In addition, central Kansas holds some of the largest reserves of helium in the world, a quickly depleting commodity that currently sells for more than $70 per thousand cubic feet.