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To support its mineral exploration activities, Geomark has invested in producing oil and gas properties. Cash flow generated from these properties is used to pay general and administrative expenses and assist in financing mineral property acquisitions and exploration programs.
All of the oil and natural gas properties are located in southwest Alberta. Below is a summary of Geomark’s important properties.
Garring Elkton Unit
The Garrington Elkton Unit is located in the Province of Alberta, Canada in Townships 33 and 34, Ranges 3 and 4, W5M and represents 66.7 percent of Geomark’s evaluated reserves at December 31, 2009. Geomark has a 4.641196 percent unit interest, subject to Crown royalties and a 2 percent net profits interest. The Company has direct interests in 320 gross and net acres in the unit.
Carstairs Elkton Unit
The Carstairs Elkton Unit is located in the province of Alberta, Canada in Townships 29 and 30, Ranges 2 and 3, W5M and represents 15.7 percent of Geomark’s evaluated reserves at December 31, 2009. The Company has a 1.75 percent unit interest, subject to Crown royalties and a 2 percent net profits interest. Geomark has direct interests in 3,352 gross acres and 487 net acres.
Harmattan Elkton Unit
The Harmattan Elkton Unit is located in the Province of Alberta, Canada in Townships 31 and 32, Ranges 3 and 4, W5M and represents 10 percent of Geomark’s evaluated reserves at December 31, 2009. Geomark has a 0.010792 percent oil unit interest and a 0.9978806 percent gas unit interest, subject to various freehold royalties, and a 2 percent net profits interest. On a land basis, the Company has interests in 1,280 gross acres and 149.4 net acres.
Granta Makepeace
The Granta Makepeace property is located in the province of Alberta, Canada in Townships 22 to 24, Ranges 17 to 19, W4M and represents 7.6 percent of Geomark’s evaluated reserves at December 31, 2009. Geomark has a direct 50 percent working interest in six sections of land. The Company has direct interests in 3,840 gross acres and 1,920 net acres. Geomark has a 1.424 percent interest in the Makepeace Pooling Agreement which the operator contends is no longer valid as of February 1, 2009. Geomark is disputing the operator’s position, however until this issue is resolved no reserves can be assigned to these interests. The interests are subject to a 10 percent freehold royalty interest and a 2 percent net profits interest.