05-03-01 Qingdao Technology Co. Ltd., a subsidiary of Digital Gas, Inc., has signed an exclusive agreement to utilize oil & gas imaging technology developed by Synthetic Aperture Imaging Technologies (Saitech). Saitech will utilize the technology and its application for the prediction of rock properties for Digital's Qingdao Technology and its partners in China after preliminary fieldwork resumes later this month.
Saitech describes the technology that will be used in China for Qingdao Technology and its strategic partner, Dongsheng Corporation, as "4D". It will represent the state of the art in seismic analysis and will result, according to Saitech CEO Tim Davies, in there being "no data set of comparable quality to Dong Sheng's anywhere on earth."
"One of the three largest companies in Canada has already used an early version of the technology with unqualified success to more than double the recoverable frequency of their existing seismic", added Davies, who has used the technology in his own drilling company and is 13 for 13 in predicting the presence of the target zone and the limits to the zone of interest.
Qingdao Technology is a newly formed Alberta corporation that will conduct the oil & gas business of Digital Gas in China, including the Dongsheng contract.
Deloitte & Touche LLP of Calgary, Alberta was approached by Digital in this matter and has offered to assist the new company in the preparation of a formal business plan, which will be used later this month as the new company plans to raise money for its China business in Hong Kong.
The company is seeking up to $ 25 mm through a private placement of common shares. Deloitte would also offer financial and income tax advice and consulting services with respect to the financial activities of the new company, 100 % of the shares of which will be distributed to Digital shareholders after Deloitte analyses the new corporate structure and advises on specific financial transactions that Qingdao Technology may wish to enter into.