RJK Explorations Signs Earn-In Option on Altai Resources Shale Gas Permit at Sept – Iles, Quebec
RJK Explorations Ltd. announces that it has signed an Earn-In Option Agreement with Altai Resources Inc. (“Altai”) for a 100% interest in oil and gas Permit # 2008PG6988 totaling 24,042 hectares held by Altai at Sept Iles, on the Upper St. Lawrence, Quebec. The Altai Earn-In Permit contains a well drilled in 1970 that hit gas and initially blew out the cement used to plug the hole. The gas was analyzed at the time as being composed of 94.6% methane, 4.9% nitrogen, 0.4% ethane and 0.04% oxygen.
RJK also added an additional permit totaling 12,400 hectares tying on to the west side of the current Sept – Iles permits and when all the RJK Sept – Iles permits are combined, they cover the entire geological structure that RJK considers to be prospective for gas and oil. RJK also announces that it has acquired approximately 36,300 hectares in new permits at Havre – Saint – Pierre in order to cover another potentially prospective geological structure.
In order to fulfill the terms of the Earn-In Option Agreement with Altai, RJK will issue 500,000 shares to Altai on signing, drill a minimum of 1200 meters and, if the results of this initial 1200 meters of drilling are satisfactory to RJK, issue a further 500,000 shares of RJK to Altai. At that point, RJK will have earned a 100% interest in the Altai Permit with Altai retaining a 15% Gross Royalty. The Agreement will remain subject to regulatory approval.
RJK has located a drill rig capable of drilling to 2000 meters, drilling permits are currently being applied for and RJK has had ongoing communications with the local government in Sept – Iles. It is RJK’s intention to drill the first well as a twin to the 1970 gas well and expects to drill to the basement rocks for geological information to be used for further drilling.
A new map showing the Altai Earn-In Permit area, the new RJK add-on Permit and the Havre – Saint – Pierre Permits is now available at the company web site: http://www.rjkexplorations.com
