Thursday, June 5, 2008
X-Terra Resources and the Zero Utica Line
For those following the X-Terra Resources (XT.V) story and either holding shares or considering purchasing shares, please be aware that their property is north of the Zero Utica Line as shown in the map below. The Zero Utica Line means......you guessed it; no geological utica shale formation north of this line. Maybe instead they can apply for potash or coal permits on this property. That may move the price to $5-$10. Remember, it's not what you have, it's what you can convince the uneducated investor what you might have.
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1 comment:
Hi there, any comment on this development, weren't these lands the wrong side??
cheers
Jon
TSX VENTURE SYMBOL: BWN
JUNE 6, 2008
Brownstone Acquires Quebec Lowlands Gas Shale Applications
TORONTO, ONTARIO--(Marketwire - June 6, 2008) - Brownstone Ventures Inc.
(TSX VENTURE:BWN) ("Brownstone") is pleased to announce that it has entered
into a letter of intent (the "Agreement") with X-Terra Resources Corporation
(TSX VENTURE:XT) ("X-Terra") whereby Brownstone will acquire a 50% interest
in applications (and subsequent permits) for approximately 150,000 hectares
of land in the Quebec Lowlands, prospective for gas shales. The land,
recently staked by X-Terra (see X-Terra's press release dated June 2, 2008)
is in close proximity to Junex Resources and Intragaz Exploration near
Shawinigan city, and Squatex Resources in the Rimouski area in the heart of
the Quebec Utica-Barnett-like shale natural gas play. Confirmation has been
received by X-Terra that the permits have been granted.
Under the Agreement, Brownstone will issue 2,000,000 common shares and
2,000,000 common share purchase warrants (exercisable at a price of $2.00
for a period of 24 months) and Brownstone further agrees to purchase 850,000
units (to include a common share in X-Terra and a $2.50 common share
purchase warrant for a term of 24 months) in a financing to be carried out
by X-Terra.
Highlights of the transaction include an area of mutual interest agreement
covering the Quebec Lowlands and Brownstone's ability to appoint the
operator for the project.
The Agreement and the transactions contemplated are subject to a 30 day
diligence period, completion of formal documentation, approval of the Board
of Directors and approval of the TSX Venture Exchange.
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