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During 2005, the Company announced that it entered into an agreement with Arrandale Financial Corp. to acquire a 75% net revenue interest in the Roark Prospect, Steuben County, New York consisting of oil and gas leases covering approximately 885 net acres.
The terms of the deal called for the payment of $150,000 as reimbursement of lease acquisition costs and lease bonuses (paid), and the issuance of 2 million restricted common shares of Litewave Corp. (to be issued subsequent to quarter end).
The Roark Prospect is located three miles west of the Howard Field in western New York state, a 1937 discovery from the Devonian Oriskany Sandstone at 3400’. The Howard Field has produced approximately 4.5 BCFG from ten wells, producing an average per well recovery of 4.5 MMCFG. This region is within a strong gas market, located nearby transmission pipeline and storage facilities.
Litewave plans to drill an initial well targeting the Oriskany Sandstone on a large soil iodine anomaly that extends east and north of the Howard Field, near the point of intersection coincidental with the westward projection of the Howard Field. Consulting Geologists indicate that the real extent of the anomaly is approximately double that of the drilled extent of the Howard Field, so a target with potential in the range of 8 to 10 BCFG is anticipated.
