SOURCE: Digital Ecosystems Corp.

April 12, 2006 09:00 ET

Digital Ecosystems Corp. Reviews GSL Energy Corp. Latest News

BELLINGHAM, WA -- (MARKET WIRE) -- April 12, 2006 -- Digital Ecosystems Corp. ("Digital") ("the Company") (OTC BB: DGEO) wishes to announce that in accordance with its intended acquisition of the assets of GSL Energy Corporation ("GSL"), management wishes to make known current aspects of the proposed Exchange.

GSL management has advised the Company that it has recently executed contracts totaling $5.2 million dollars for two seismic series in connection with the commencement of two development programs located in Colorado and Australia. The first program is in Colorado in a portion of project area that, in total, covers 20,200 acres and the second is in Australia, targeting a segment of the 7,000,000 acres under license there.

On March 3, 2006, GSL entered into an Agreement with American Geophysical Corporation on behalf of the El Paso Production Company for a 3D seismic information program that covers 19.65 square miles of the Company's Buckskin Mesa/Powell Park project. The Buckskin Mesa Project is located in the prolific gas producing northeastern Piceance Basin, Rio Blanco County, Colorado.

The Company owns a 50% working interest in approximately 16,000 acres and is negotiating a contract to purchase an additional 4,600 acres in April, bringing the Company's total acreage to 20,200 acres for its Buckskin Mesa/Powell Park project. Third party engineering developed by Gustavson Associates estimates the existing in-place potential gas resources (P50) of all play types within the 16,000 acres at nearly 2 TCF of gas with potential recoverable resources of 1 TCF. As a result of the successful Exxon well drilled in the adjacent section in the Piceance Creek field and in conjunction with the Company's development plan of drilling up to five (5) wells by August, 2007 the seismic program will reduce the Company's drilling risks and help to ensure successful development of the play.

In Australia, GSL has awarded a successful bid to Terrex Seismic Company, a Darwin based firm, for a 3D seismic program which will start in July that covers 698.5 square km on its 7,000,000 acre licenses. This seismic program is part of the licenses and development agreements with the Government of the Northwest Territory in a region known as the Beetaloo Basin prospect(s) located 500 km south of Darwin. The 7,000,000 acre license includes both oil and gas potential and Gustavson Associates estimate's are that the prospect(s) have a potential 300 Million barrels of recoverable oil and natural gas BCGA resource potential in place that is approximately 200 TCF in size with a 10% recovery factor. The Company exploration plans include the drilling of up to six wells by the end of 2007, including ongoing seismic programs.

As mentioned previously, pursuant to the terms of the definitive agreement with GSL Energy Corporation ("GSL"), and subject to closing, Digital intends to own and operate the assets of GSL and change its business to that of GSL (the "Exchange"). The Closing of the Exchange is subject to a number of conditions, including the following: (i) satisfactory completion of due diligence by both parties; and (ii) delivery of financial statements of GSL required under securities laws. These conditions are being undertaken and efforts are ongoing as it is the intention of both parties that they be concluded on or near to April 28, 2006.

Forward-Looking Statements:

This press release contains forward-looking statements, particularly as related to, among other things, Digital's business strategy. The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause Digital's actual results, performance or achievements, or developments in its industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks, uncertainties and other factors that are detailed in Digital's Quarterly and Annual Reports and other documents Digital files from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. Digital cautions readers not to place undue reliance on such statements. Digital does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from Digital's expectations and estimates.


Digital Ecosystems Corp

Gregory L. Lyons, President

Contact Information

  • Investor Relations Contact:
    Brad Long