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BGX-Black Gold Exploration Corp. (CSE: BGX) holds a 95% interest in the El Carmen hydrocarbon project. The property is located in the Chubut Province, Argentina, about 7 kilometers from the Atlantic coast along the northern margin of San Jorge Cretaceous age sedimentary basin. The San Jorge Basin ranks second of the five producing basins in Argentina, and has proven oil reserves of about 160 million cubic meters (a billion barrels). It is estimated that only 35 percent of the basin has been fully explored, and there exists the possibility that its current oil reserves can be nearly doubled. Intense exploration is taking place. The immediate area of El Carmen is a prolific oil and gas producer with highly developed infrastructure.

 

BGX - Black Gold Exploration Corp originally purchased the four contiguous El Carmen mine rights, covering 2,000 hectares, from the province at a tax sale in November of 2000. These mine rights were perfected in 1929/30 on the basis of oil and gas discoveries. The mines status of the property affords BGX - Black Gold Exploration Corp unique rights in that it owns outright title to all hydrocarbons vertically beneath the boundaries of the block of mine claims. Thus, the property is not subject to the federal hydrocarbon leasing program.

 

Argentina established an Old Mining Concession about hydrocarbon leasing. The royalties for Oil and Gas production should be up to 8 % of the weighted of the production.

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BGX - Black Gold Exploration Corp seeks to option El Carmen to an established oil exploration company, preferably one operating in Argentina. Prospects geologically similar to El Carmen in Alberta normally attract five-year Crown lease bonus payments of up to C$50 per hectare, and C$1.00 per hectare annually thereafter.