NEW YORK, Nov 22, 2000 /PRNewswire via COMTEX/ -- Digital Gas, Inc. (DIGG - Pink Sheets) today announced that it plans to form a separate oil & gas enhancement technology company for the Canadian market.
Earlier this month, Digital gave a presentation in Calgary to one of the world's leading business advisory firms on the potential of its Dong Sheng contract. At the same meeting Digital reviewed a highly prospective Canadian oil & gas property and outlined its plan to operate a separate enhancement company for the Canadian market. Digital has since received an offer by the advisory firm to advise the Canadian enhancement subsidiary, which shall be owned in whole or part by Digital shareholders. Digital accepted the offer.
With the business advisor in place, Digital began negotiating with a Canadian investment banker to take the enhancement subsidiary public in Canada and assist it in the raising of drilling and operational funds. The business advisor will assist in the aforementioned process and when the investment banker is chosen, Digital will provide additional information regarding the business advisor, the investment banker and its plan to transfer all or part of the ownership of the Canadian enhancement subsidiary to its shareholders.
In a separate development, Digital Gas reports that its oil & gas enhancement team has just arrived at the offices of Dong Sheng Corporation of Shandong Province, Peoples Republic of China to improve the oil & gas production and field recoveries on the first 23 wells in Dong Sheng's Weibei Field. These wells have wax problems. Digital's team analyzed oil and water samples taken from the October trip and arrived with the wax removal solution.
Digital Gas will earn a significant percentage of the total production of each Dong Sheng field for little or no direct investment. If the current enhancement program in the Weibei Field is successful, significant cash flow will be earned as early as December.
For further information, contact Leo Murray at (212) 856-4496.
SOURCE Digital Gas, Inc.
CONTACT: Leo Murray of Digital Gas, Inc., 212-856-4496 (DIGG)
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