Company to drill for gas, oil
By PAUL MORDEN, The Observer
Updated 1 day ago
Alberta-based Mooncor Oil and Gas has bigplans for the more than 20,000 acres of leases it holds in LambtonCounty and Chatham-Kent.
Vice-president Richard Cohen said thecompany has brought on a geologist who is putting together a drillingprogram for their southwestern Ontario sites.
"We're pretty excited about the gas and oil potential in Lambton County," he said.
"We'rein the process of arranging a spinoff, as we announced several monthsago, but we are going to be doing a little more work on it as Mooncorover the next month or two."
That includes drilling "two or three wells" targeting natural gas and oil, he said.
The company has "somewhere between $700,000 and $1 million . . . to spend before year-end on work on the properties," he said.
The spinoff company will be called DRGN Resources and Cohen said it hopes to become a major player in southwestern Ontario.
"Wesee so many opportunities, just on the land we have," he said. "We alsoare looking to a lot of smaller mom and pop companies out there thatdrill four or five wells a year and just don't have access to capital.
"We've never had any trouble accessing capital."
Cohen said he was been speaking with 21 companies "that we're targeting as a possible consolidation play into our spinoff."
Mooncor is looking to form an entity in southwestern Ontario "that has some sense of size," he said.
"There are tremendous opportunities toenhance Ontario's production, which diminishes our dependence on mybuddies out in Calgary."
He said the "longer-term outlook" for the company is to explore the shale gas potential in southwestern Ontario.
"If there is a shale gas play there, it's going to be a real bonus," he said.
"But, it's couple of years down the road."