Mooncor Oil & Gas Corp. on Wednesday provided clarification on the findings of the report prepared by BOE Solutions Inc. of Calgary, Alberta, details of which were provided in a Mooncor announcement dated August 25, 2009. A copy of the report will be posted on Mooncor's website at www.mooncor.com.
Mooncor's Hamburg shale gas resource play is in the very early stages of evaluation and assessment. Work undertaken by Mooncor to date has been to conduct a pilot test on a vertical well to determine elements of reservoir quality in the Muskwa zone and establishing a land position comprised of 162 sections of 100% working interest lands. BOE is an independent consulting firm that was retained as technical advisors to Mooncor. The principals behind BOE have extensive technical and operating experience with a number of unconventional resource plays including Coal Bed Methane ("CBM"), and the Montney and Horn River Basin unconventional gas plays in northeast British Columbia. The main objective of the BOE study was to compare Mooncor's Muskwa Formation shale gas play at Hamburg in northwest Alberta with the better-known and highly publicized shale gas discoveries in the Horn River Basin of northeast British Columbia.
The principals of BOE are registered professional engineers with the Association of Professional Engineers, Geologists and Geophysicists of Alberta ("APEGGA"). Their qualifications are provided in the report to be posted on Mooncor's website. DeGolyer and MacNaughton Canada Limited is Mooncor's independent reserves evaluator under National Instrument 51-101 ("NI 51-101").
The reference to "estimated ultimate recoverable gas", a frequently used term in the oil and gas industry, is not a recognized term under NI 51-101, there is no resource category for such term and is a value derived from the BOE simulation modeling. The reader is also cautioned that reference to normal economic indicators such as "a before-tax rate of return" does not indicate profitability as profitability has yet to be proven and relates to numerous variables including costs and commodity pricing. There is no certainty that it will be commercially viable to produce any portion of the resources.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development company with unconventional shale gas, light oil and heavy oil projects in Saskatchewan, Alberta and South Western Ontario. Mooncor is focusing on its shale gas opportunities with a current emphasis on the high impact proven shale gas play in the Western Canadian Sedimentary Basin.
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