Eternal Energy Corp. Acquires Rights to North Sea Petroleum Project

Strategic Insights -

Eternal Energy Corp. has made significant strides in its oil and gas exploration efforts, acquiring a ten percent working interest in a North Sea petroleum project. This development comes after the company entered into an agreement with International Frontier Resources Corporation on November 29, 2005. The project, which covers a 255 square kilometer block in Quad 14, has shown promising results from a modern high-resolution 3-D seismic survey, indicating potential for at least three hydrocarbon-bearing zones.

Key Takeaways:

  • Eternal Energy Corp. has acquired a ten percent working interest in a North Sea petroleum project through an agreement with International Frontier Resources Corporation.
  • The project covers a 255 square kilometer block in Quad 14, and the company has agreed to pay $90,000 as consideration.
  • Eternal Energy Corp. has also agreed to provide an irrevocable letter of credit for $1,500,000 in favor of Palace Exploration Limited, another participant in the North Sea project.
  • The project is located in close proximity to several existing oil and gas fields, including the Claymore oil field, Scapa oil field, and Goldeneye natural gas field.
  • Drilling of the initial exploratory well is scheduled to commence during the second quarter of 2006, subject to rig availability.
  • The corporation was incorporated in Nevada on July 25, 2003, to engage in the acquisition, exploration, and development of natural resource properties.

Statistics:

  • The project covers a 255 square kilometer block in Quad 14 of the North Sea.
  • Eternal Energy Corp. has agreed to pay $90,000 as consideration for the ten percent working interest.
  • The company has also agreed to provide an irrevocable letter of credit for $1,500,000 in favor of Palace Exploration Limited.
  • The project is located 24 kilometers south of the 639 million barrel Claymore oil field.
  • Subject to rig availability, drilling of the initial exploratory well is scheduled to commence during the second quarter of 2006.

Sources:

  • Eternal Energy Corp. (2005)
  • Private Securities Litigation Reform Act of 1995
  • PrimeZone (2005)