By OGJ editors
HOUSTON, Feb. 18 – Universal Potash Corp., Fox Island, Wash., negotiated the acquisition of a majority interest in subsurface potassium rights on 3 sq miles of school trust lands in the Paradox basin northwest of Moab, Utah. Natural gas is used in potash processing.
The leased property is less the 1,000 yards west of the US Bureau of Land Management’s designated Known Potash Leasing Area reserve.
Contiguous to the company’s leases are a pool of professional labor, a major highway, natural gas pipeline, and a major power source. Improved roads crisscross the leases. The company has oil and gas well data displaying sections of salts nearly 3,000 ft thick containing multiple potash beds in the Paradox salts.
The leased properties are adjacent to 640 acres of prospective ground for which the company was the winning bidder on Utah potash lease applications. The company has potash applications pending approval on more than 29,000 acres.
The two new properties are immediately west and adjacent to school sections that have seen previous drilling for oil and gas and intersected thick sylvite and carnallite, with sylvite values averaging near 20% and ranging as high 49%.
Potash price increases have sent the share prices of many potash producers and explorers higher in recent months, supported by BHP Billiton’s recent $39 billion hostile takeover bid for Potash Corp. of Saskatchewan, the world’s largest producer.
Utah: Paradox well data spur potash activity
By OGJ editors