By OGJ editors
HOUSTON, Nov. 26 -- Galaxy Energy Corp., Denver, said it would acquire for 2 million Galaxy shares the stock of Pannonian International Ltd., a private Colorado corporation, by yearend under a letter of intent signed last week.
Pannonian, which will remain under direction of Thomas Fails, a former Shell Oil Co. senior geologist, holds significant conventional natural gas and coalbed methane interests in Europe.
Galaxy plans to focus initial efforts on development of Pannonian's holdings in Romania, where it has a 30-year concession on 21,538 acres in the Jiu Valley. Pannonian's concession is in an area mined for decades that contains as many as 18 coal seams 985-3,280 ft deep. The main target seam averages 22 m thick.
Pannonian plans to drill two CBM wells in the Jiu Valley in the first quarter of 2003 at a site 1.5 miles from a 20-in. gas pipeline.
