25-02-99 Daytona Energy has signed an oil exploration Study Agreement with the Government of the Republic of Liberia, West Africa. The Agreement provides Daytona with the exclusive right to conduct a Geological and Geophysical Study of the petroleum exploration potential of an area designated as Block A offshore Liberia. Daytona has a 100 % interest in the Study Agreement.
The Study will be conducted over a period of six months during which time Daytona can commence exclusive negotiations for a Production Sharing Contract (PSC) with the Government of Liberia for Block A. The Study period can be automatically extended for a period of 3 months, if required, to complete the negotiations for the PSC.

Liberia has a coastline of 560 km along the Atlantic Ocean, West Africa. It is bounded on the west by the Republic of Sierra Leone and on the east by the Republic of Ivory Coast.
Block A covers an area of approximately 6,000 sq. km in the Monrovia Basin and was licensed to Union Carbide in the early 1970s and to Amoco during the 1980s. Limited exploration on Block A was undertaken by Union Carbide and Amoco including seismic surveys and the drilling of two wells.
Union Carbide drilled well A1/1 to a depth of 5,405 ft in April 1971 and a number of shows were encountered throughout the sedimentary section. Amoco drilled well S1/1 to a depth of 13,575 ft in 1984. Both wells were in water depths of less than 600 ft and the deeper water area of the acreage has never been tested by drilling. Many significant discoveries have been made in deep water acreage in West Africa in recent years.

Liberia's continental shelf and slope are underlain by up to 20,000 ft of sediments. The wells drilled to date in the offshore basins of Liberia encountered fair to good hydrocarbon shows. Good to very good hydrocarbon shows have been encountered in Cretaceous sands on the Continental shelf. In the Monrovia basin visual kerogen studies indicate that the Late Albian sediments show mixed oil/gas potential. The best reservoirs found offshore Liberia are in the Late Cretaceous section. With porosity ranging from 20-30 % the moderately cemented and friable sandstone forms an excellent reservoir.
Daytona's expenditure on the project during 1999 will be approximately $ 75,000.