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Show page twelve The National Enterprise , June 30, 1976 Rainbow to Operate Exploration Venture Continued From Page Ten able prospects are present. HIGHER EARNINGS The company also $16,700 or 1 cent per share for the first nine months of fiscal 1975. Total income for the rose period slightly to $3,380,400 from $3,338,100 in an- nounced higher earnings for both the nine months and third quarter of fiscal 1976, ended April 30, 1976. Rainbow' earned $713,200, or 33 cents per share for the nine month period, compared to the period. For the third quarter, Rainbow earned $166,600 or 8 cents per share compared to a loss of $522,800, or 24 cents per share in the fiscal 1975 third quarter. Total income for the quarter almost year-earli- er doubled, to $1,130,100 from $586,100. Marvin A. Keller, executive vice president of the company, said that increased oil and gas sales and lower lease rental expenses were chiefly responsible for the improved financial results. Keller said that Rainbow has contracted to sell natural gas and natural gas liquids from seven shut-i- n gas wells in Rainbows Craven Creek Field in Southwestern Wyoming to Northwest Pipeline Company. Rainbows interest in the wells averages approximately Compression facilities are under construction and initial delivery from the Held is expected to approximate 10,000,000 cubic feet of gas per day. 20. Brodie Marks Progress Continued From Page Nine field in the near future, he continued, and two of the wells have a chance of hitting a larger pay zone, a zone that could produce 100 barrles of oil a day in each of the wells, or, translated into benefits for the company, an additional $9,500 a month. With the completion of all of the wells, he added, Brodie Exploration could have a cash flow of $32,000 a month at current oil prices, and, he added, prices are scheduled to go up. Step Up Production There is room for approximately 20 wells, in addition to the seven that have been drilled in the field and the three that are planned, he said, and the firms probably will step up production. If development of the field is speeded up, however, it will mean that Brodie will have to borrow money for the first time to keep its interest in the field. All of the wells in the field, he said, should produce at an average settled rate of 35 barrels of oil a day, with an average payout of two years and a life expectancy between 20 and 25 years. The company has interests in other oil and gas properties, he added, but there are few developments in those holdings. But, the company cur-- , rently has rearranged the terms of its acquisition of the Caribou Mine and Mill, five miles northwest of Nederland, Colo., in Boulder County. It has made a $50,000 down payment on the property Brodie said, and the new arrangements give the company more time to find a partner to try and develop the mine. The next $25,000 payment is due June 22 and $100,000 is due on Dec. 22. The remainder of the $1 million purchase price is due a year later. Brodie said that negotiations are underway now, both with firms and with individuals, for development of the mining property. The companys best, but For further information please call James Barrett , Chairman . Area Code 208 356-4229. longest range prospect, Brodie continued, is its coal holdings in Alaska. The company has made application for permits to exd plore 46,000 acres of state-owne- land First Lombard Corporation Investment Bankers Salt.Lake City Idaho Falls near Sitka, Alaska, part of an 800,000 basin shaped coal area, he said. Brodie told the shareholders that a hole drilled in the center of the basin showed a 500-fovein of coal at a depth of 3,000 feet. The project would be technically difficult, he said, but the company hopes to form an alliance with a major oil or coal company for development of the property. ot |