Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

ZIMI LIMITED Capital/Financing Update 2009

Jan 13, 2009

66122_rns_2009-01-13_f7d7779e-7d06-41b8-b4f8-100342e20f89.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

==> picture [158 x 95] intentionally omitted <==

WHL Energy Ltd

Level 56, MLC Centre 19-29 Martin Place Sydney NSW 2000 Australia P: +61 2 9238 6340 F: +61 2 9238 6363 www.whlenergy.com

14 January 2009

Manager Companies Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

WHL Energy, Gale Force Petroleum, Derby Resources Announce Farmout of Kentucky Shale Gas Property

- Project to Focus on Near-term Increases in Production and Revenues -

WHL Energy (ASX: WHL), Gale Force Petroleum (TSX-V: GFP) and Derby Resources (collectively, the “Farmors”) are pleased to announce the signing of a farmout agreement. According to the terms of the agreement, the Farmee, who will remain confidential, may earn up to 50 percent interest in the Kentucky Shale Gas Property, currently comprised of 22,000 acres, 9 existing wells, gathering lines and two compressors in Eastern Kentucky, by paying for a series of staged development programs.

The primary goal of the farmout is to increase and accelerate natural gas production and revenues generated from the current Kentucky Property and adjoining leasing opportunities. The initial development program, estimated to cost $400,000, will begin in the spring of 2009 and will focus on the completion of some of the existing nine wells. For paying the completion of the existing nine wells, the Farmee will earn a 60% interest before payout in these wells.

Additional development programs will be pursued at the Farmee’s option later in 2009 and in 2010. For newly drilled wells, the Farmee will earn a 75% interest before 1.5 times payout. The Farmee, at its option, may spend up to $2 million on the programs, upon which it will back in to earn a 50% interest in the Kentucky Property.

There is consistent natural gas potential across the Kentucky Property and low-cost, low-risk drilling for the Devonian Shale target, with more than 200 prospective drilling locations immediately adjacent to the existing infrastructure. The Devonian Shale is consistently 250 feet in thickness on the Kentucky Property, with a predictable natural gas production profile.

The Kentucky Property forms part of the oldest producing petroleum system in the United States. The Devonian Shale plus Middle and Upper Paelozoic system in the Appalachian Basin together contain 31.4 Tcf of technically recoverable natural gas, with estimates of an aggregate 550 Tcf natural gas in place, according to the US Geological Survey. Within the system, there are 15,000 wells drilled to or through the Devonian Shale in Eastern Kentucky alone.

ABOUT WHL ENERGY LTD. www.WHLenergy.com

WHL Energy Limited (WHL) is an Australian publicly-listed company focused on developing and commercializing energy assets including wind energy and clean fossil fuels (natural gas).

ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com

Gale Force Petroleum is a public corporation focused on acquiring and exploiting unconventional and conventional gas resources in mature basins, building shareholder value through growth. It owns producing natural gas properties in Alberta, Canada and in Kentucky, USA.

For more information please contact:

WHL Energy Ltd.

Peter Bartter, +61 2 6961 9821, [email protected]

Gale Force Petroleum Inc. Michael McLellan, +1 514 333 9292, [email protected]