HOUSTON, Dec. 7, 2005 (PRIMEZONE) -- Falcon Natural Gas Corp. (OTCBB:FNGC) has signed drilling contracts with Blue Ridge Group, Inc. (BRG) and Bayou City Exploration, Inc. (OTCBB:BYCX) (BCE) to purchase working interest in BRG's and BCE's oil and gas prospects.
Following up on the Letters of Intent, the companies have sealed the deals, forging binding drilling contracts with Blue Ridge Group and Bayou City Exploration. Max Pozzoni, Vice President of Business Development for Falcon Natural Gas Corp., said, "We want to let the market know that we signed all the drilling contracts that were mentioned in the non-binding letters of intent that the company announced in September and that we will be spudding the first well before the end of the month."
Falcon will purchase 12.5% of the working interest of Prospect 107 located in Beauregard Parish, Louisiana and will fund 16.67% of all well costs to casing point on the first well drilled on the prospect. Falcon will also pay 16.67% of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other related costs associated with the prospect.
Under the contract terms with BCE, Falcon will purchase 12.5% of the working interest for the Live Oak County Prospects, which include Jaboncillo Windmill Prospect, Leopard Branch Prospect and Frost National Bank Deep Prospect. Falcon also will pay 16.67% of all well costs to casing point on the initial well drilled on each prospect and 16.67% of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs of the prospect.
Under the trade terms for BCE's Jeff David Parish Prospects, including Gemini Prospect and Zodiac II Prospect, Falcon agrees to purchase 25.0% of the working interest from BCE. Also, Falcon will pay 33.33% of all well costs to casing point on the initial well drilled on each prospect and its proportionate share of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs associated with the prospect.
Falcon Natural Gas Corporation, based in Houston, is a natural gas exploration company focused on the acquisition and exploration of commercial prospects in onshore areas of the USA. For information visit www.falcongas.com.
Bayou City Exploration, Inc. is an oil and gas exploration firm focused in proven geologic trends in East Texas, the Gulf Coast of Texas and Louisiana. Based in Houston, Bayou City leverages its management team's long experience and multidisciplinary expertise in applying advanced 3-D seismic analysis, 3-D processing algorithms, amplitude attribute and imaging technologies to reduce the drilling risks by identifying the presence of economic hydrocarbons. The Company's database has more than 7,200 square miles of 3-D data, most of it covering Bayou City's focus area, as well as 13,000 miles of 2-D data (www.blueridgegroup.com).
Safe Harbor for Forward-Looking Statements: Among the important factors that could cause results to differ materially from those indicated are the risks inherent in oil & gas exploration, the need to obtain additional financing, the availability of needed personnel and equipment for future exploration and development, fluctuations in gas prices, and general economic conditions.