The Friendsville Group

There is a 3D Seismic company called PGS On-Shore approaching landowners in the Friendsville Group Area requesting that they sign agreements to allow access to property.  This effort is a speculative 3D data gathering effort by PGS On-Shore covering a 255 square mile area.  Fortuna is talking with PGS and may participate with them in the survey.  We are awaiting clarification from Fortuna to make sure there is no conflict between PGS's agreement and the Group Lease that we signed with Fortuna.  The Seismic Company is offering $5 per acre for the right to access the properties where they are interested.  Look back here in a couple days and we should have more information and direction from Fortuna by then.

 

Since this is a speculative seismic survey, ultimately it is the individual Landowner's decision whether they allow PGS On-Shore to have access to their property.  However, gathering 3D data is one of the next steps that Fortuna planned anyway as they moved forward on their exploration and development plan.  The 3D data shows subsurface information such as natural fractures, faults, formation depth, and thickness that will help the drilling Engineers determine well location and horizontal drilling plans.  If PGS On-Shore did not do the 3D Seismic work, Fortuna would have had to do it anyway, so it is in our best interest to have the data gathered.

 

We just want to make sure that the PGS agreement does not conflict with the Group Lease since Fortuna has not yet "executed" our Leases.  Please check back here later this week for more information and direction from Fortuna.

Thanks,
The Core Team