Arsenal Energy to acquire Canada's Quadra Resources

Arsenal Energy Inc. signed an agreement to acquire Quadra Resources Corp. with closing anticipated by Aug. 15. Both are Calgary independents.

June 23, 2005

By OGJ editors
HOUSTON, June 23 -- Arsenal Energy Inc. signed an agreement to acquire Quadra Resources Corp. with closing anticipated by Aug. 15. Both are Calgary independents.

Completion requires Quadra interest holder and regulatory approvals.

Quadra's main asset is the 7.5 million acre Nuqra oil and gas concession in the Kom Ombo basin near Luxor in Egypt's southern Nile Valley south of 28° N. Lat. Quadra farmed out the block to TransGlobe Energy Corp., Calgary, in mid-2004.

Quadra also owns Chase Energy BV, a private Netherlands company, which has a protocol agreement with Ukraine's state Uzbekneftegaz.

Quadra relinquished the 256,030-acre Iraca Association Contract area in Colombia in May 2005 after two wells found gas in the Cretaceous La Luna and Maracas formations with permeability too low to permit commercial flow rates.

Arsenal also operates in Alberta, Saskatchewan, and North Dakota.