| ||August 18, 2004|
MBA Energy Corp. to Farm In on 2 New Brunswick Oil & Gas Prospects
| ||MBA Gold Corp. (TSX Venture: Symbol MBA) is pleased to announce that its wholly-owned subsidiary MBA Energy Corporation has entered into an agreement with Contact Exploration Inc. (TSX-V: CEX) of Calgary, Alberta to farm in on the Dover and Gautreau on-shore oil and gas projects in Eastern New Brunswick. Dover and Gautreau are contiguous 3 section parcels located 2 km east of the Stoney Creek field which produced approximately 1 million barrels of oil and 30 BCF of gas prior to its abandonment in the late 1980's. Stoney Creek primarily serviced the City of Moncton approximately 15 km to the North, but the area is also situated 25 km South-West of the Maritimes and North Eastern pipeline which currently delivers offshore gas to the North-Eastern United States. |
The Dover and Gautreau prospects are fault-bounded features, similar in size and structural style to Stoney Creek, Stoney Creek produced from lacustrine sandstones of the Lower Mississippian Albert Formation, which are also productive in other areas of New Brunswick, notably the McCully gas field recently discovered by Corridor Resources Ltd. (TSX-V: CDH) approximately 60 km to the South-West. Prior exploration indicates that the Albert Formation occurs at relatively shallow depths (500 to 800 meters) at Dover and Gautreau.
In the current drill programs scheduled for October, the prospects will be evaluated by "twinning" 2 wells drilled by previous operators which flowed gas from several shallow Albert Sands. One of these wells, the NBO Gautreau 85 tested 330 mcfd gas in 1928-1929 and the other, Imperial Gautreau #1 tested 700 mcfd in 1958. It is thought that modern drilling and completion methods may increase the flow rates seen in the original wells.
"The Dover Gautreau project is an ideal first step for MBA Energy" stated CEO Cameron White. "We have the opportunity to earn a major stake in what could be a significant 'new' discovery, by twinning 2 successful wells. We are also very pleased to be working with the experienced management team at Contact Exploration who we are confident will do a tremendous job of operating the project."
By drilling and completing the initial 2 test wells, MBA Energy will earn a 50% working interest in both prospects as well as the right to participate in future prospects in the Moncton sub-basin.
MBA Energy Corporation is a wholly-owned subsidiary of MBA Gold Corp., a natural resource company whose strategy is to acquire a portfolio of resource properties that have indicated mineral resources and require further exploration or development work. MBA will add value to these projects by providing capital, exploration expertise and where justified, development and production planning.
For more information, contact Mr. Cam White at 604-707-0373.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy or the adequacy of this press release.
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