Canada’s Sentry Resources Corp., jumping in with the big fish ina potentially rich sea, last Friday completed a transaction givingit 100% of Georgian Bancorp Inc.’s interest in gas and oil reservesand land rights in the Mackenzie Delta and Beaufort Sea areas ofCanada.

The interest originally had been acquired by The Georgian Group,Sentry’s main shareholder, between 1981 and 1986 in a $900 millionexploration program under a farmout agreement with Esso ResourcesCanada Ltd. Under the farmout agreement, The Georgian Companiesspent $43 million to drill on more than three million acres ofland, including 400,000 acres of Inuvialuit land. Including thecurrent transaction, Sentry now has nearly 2.6% interest in theseproperties.

For the transaction, Sentry issued a promissory note to GeorgianBancorp for $5.5 million at 6% interest. The note will mature June26, 2003. The note remains open, and before maturity and uponreceipt of all of the necessary regulatory approvals and stockexchange approvals, Georgian may convert the principal and interestinto treasure common shares of Sentry for $0.15 per share.

In Sentry’s quarterly report for the period ending March 31,revenues from petroleum and gas operations totaled $44,037, up 7%from December 1998. Management said it was “encouraged” by therecent increases in energy prices, and said that the price hikes”increased immeasurably the opportunities that may be open to us asa result of our stake in the Beaufort Sea reserves.”

Whether the land pays out fast enough to do well by Sentry’sstock remains to be seen. At close of business last Friday,Sentry’s stock price, listed on the Canadian Stock Exchange, stoodat $0.12, unchanged from the day before. In the past year, it hastraded as high as $0.21. For the quarter, the stock is down 14%.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.