Kenartha
KJ5 on the Frankfurt Exchange
Latest News
 
Kenartha oil and gas limited Sourcing Funding For Brazil Hydro-Electric Generation - (Feb. 14, 2007)
Toronto, Ontario - Kenartha Oil & Gas Company Limited (Frankfurt Exchange: KJ5), an explorer and developer of natural gas resources, wishes to state that...
Kenartha oil and gas limited Announces Dividens - (Jan. 31, 2007)
Toronto, Ontario - Kenartha Oil & Gas Company Limited (Frankfurt Exchange: KJ5),...
Kenartha oil and gas limited Seeks Expansion into Hydro-Electric Generation - (Jan. 24, 2007)
Toronto, Ontario - Kenartha Oil & Gas Company Limited (Frankfurt Exchange: KJ5),...
 
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The Company presently holds interests in natural gas production facilities in southern Ontario, Canada and sales agreements with Union Gas Limited for the purchase of its natural gas production. The Company is currently producing and selling natural gas volumes in the range of 50 to 75 MCF per day.
 

Expansion Plans

The Company has embarked on a Program to explore on properties situated in the Norfolk-Haldimand County, Southwestern Ontario, Canada. The Program is a multi-year exploration and development plan that entails well drilling and completion of fifteen (15) wells per year targeted for natural gas. The Company on the basis of funding the drilling acquires a 49% working interest in each well. It is planned that the processing plants will be within two (2) miles of Union Gas Limited's low pressure transmission pipelines which are capable of receiving natural gas production.

Generally, in this region, targeted natural gas production zones are located in the Clinton formation approximately 1,400 feet down from surface, and the Medina formation approximately 100 feet below the Clinton formation. It is believed that the Clinton formation production of natural gas exists due to the up dip shaling of the Medina reservoir rocks. The pay (production) zones in the Clinton formation normally are elongated bodies (probably originally offshore bars) of fine-grained sandstone inter-bedded with shale. Both intergrannular and fracture porosity are known to be present. Most drilled wells in surrounding locations from which natural gas production is derived from the Clinton and Medina formations are stimulated resulting in dramatic increases in natural gas production flow from their original absolute open flow rates to over 100MCF per day.

The Company has negotiated an agreement with an Oil/Gas Lease holding entity that has identified, holds and has secured the targeted properties for the initial three (3) years of the planned Program. Additionally, this entity has a working agreement and relationship with a seasoned, highly reputable, local oil-well drilling & servicing firm. This combination creates a team very capable of securing additional properties, locating the proposed wells, drilling and completing the wells, maintaining the day to day operations and production of the successful wells, and liaising with local regulatory agents and Union Gas Limited's personnel.

Given the potential advantage of the present environment in natural gas pricing, and the involvement and input of the combined team, the Project promises to be very profitable. On the other hand, in light of the fact that there are many unknowns the Project could be qualified as highly speculative.

   
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