Cougar O&G Updates Ops, Amalgamation with Cougar Energy
Cougar O&G Canada provided an operations update to the previously announced Q1, 2011 Trout core area multi-well drilling program and 3D seismic program and an additional two well deepening operation. Cougar also announced the amalgamation with the Corporation's 100% wholly owned subsidiary, Cougar Energy, Inc.
The previously announced 23.8Km2 high resolution 3D seismic program has now been advanced by 2 weeks. It is anticipated the field work will begin no later than January 15, 2011. The initial field work will include the source and receiver line clearing and surveying and will be followed by the seismic shot hole drilling and data recording crews. The seismic program is expected to take approximately 25 days in the field and 90 days for processing and data analysis afterwards. This seismic data will provide the Corporation with the detailed geophysical information needed to support the geological selection of the drilling programs which will be executed over the next 18 to 24 months.
The previously announced multi-well drilling program continues on schedule with final permitting underway. Cougar has been working diligently with various drilling service companies to finalize the project's scheduling and budgeting information. It is anticipated the drilling field work will begin by February 15, 2011.
Cougar is also currently working on a reactivation program in the Trout core area, which involves contracting a service rig to deepen two existing wells to test and produce an additional lower Keg River oil formation. The two wells which will be deepened have been suspended for several years but are tied in with pipelines to the main Cougar production facility. The additional lower Keg River oil formation was identified through detailed analysis of the reprocessed 3D seismic acquired in September 2010 and has the potential to add additional reserves, production and cash flow. The service rig will move onto the wells the first week of January, 2011 and the results should be known by month end.
Effective January 1, 2011 Cougar has completed the amalgamation requirements with its 100% wholly owned subsidiary Cougar Energy, Inc. and will change its financial reporting year end from July 31, 2011 to December 31, 2010. Audited financials will be filed for the stub period August 1, 2010 to December 31, 2010. Cougar has assumed all of the Cougar Energy, Inc. contracts, properties and obligations through the amalgamation.
Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "Thus we continue to build on the foundation of existing production of light sweet crude oil, net positive cash flow, excellent net backs due to an extensive infrastructure (pipelines, batteries, roads) to support up to 2500 bbl/d without extensive capital infusions for additional production brought on line, and multiple opportunities to grow production and revenue on the existing lands held. Such as the new work programs including the 2 well reactivation/deepening program, by the ongoing successful maintenance programs that have brought us to this point and the previously announced 3D seismic and the announced 2-3 well development step out horizontal and directional drilling programs for Q1, 2011 and supplemented with the planned drilling exploration programs for Q3 and Q4 2011 on the lands acquired in July of 2010 we have an extremely well defined plan of development for the next 12 to 18 months."