Calgary-based Canoro Resources Ltd. has acquired a working interest in two gas properties and 15,000 additional acres in the Chambers area of western Alberta from Rosetta Exploration Inc. for approximately $1 million. Following this transaction, the company said it sold a portion of its working interest to Aurado Exploration Ltd. Canoro said the properties include two producing gas wells, with an additional zone completion planned. The company’s net interest in the wells is 4% and 3.5% respectively. An independent engineering report indicated that Canoro’s interest in the producing wells will generate average annual cash flow of $200,000. The balance of the purchase price will be paid out of a portion of monthly cash flow from the properties.

Houston-based independent Contango Oil & Gas Co. has picked up three offshore Gulf of Mexico (GOM) blocks, with an option on a fourth. Subsidiary Contango Operators Inc. and its 33.3% owned affiliate Republic Exploration LLC, entered into the agreement with a private company for an undisclosed amount. The blocks, acquired in March 2001 in the Minerals Management Lease Sale 178, are located in the Central GOM, and include Eugene Island 110 and 113B and Grand Isle 24 and 28. Under the agreement, Contango and Republic Exploration will begin exploration and production activities with reversionary interest at pay out on each block. Drilling is expected to begin before the end of the year.

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