Cougar O&G Commences Trout Seismic Program
Cougar O&G Canada provided an operations and financing update to the previously announced Q1, 2011 Trout core area multi-well drilling program and 3D seismic program.
The previously announced 23.8Km(2) high resolution 3D seismic program has now had all permits approved. Work crews and equipment is currently mobilizing to the project area. Line cutting will begin on Tuesday, January 11, 2011. The project is currently ahead of schedule and will have all field work completed by the end of January. Regular progress updates will be provided. 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. The applications for the surface leases have been submitted and the drilling licence preparation is continuing. Cougar has been working diligently with various drilling companies to finalize and procure the equipment that will be utilized in this project. There are currently several regional drilling projects which will be ending in the next 4-6 weeks. This will enable Cougar to move in equipment and experienced crews without significant mobilization costs. It is anticipated the drilling field work will begin by February 15, 2011.
Cougar has secured initial funding for the drilling program through the exercise of existing Cougar warrants and a $3 million credit facility with current commercial terms. Additional information will be provided upon closing.
Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "We are very excited to announce the successful permitting and the start of field operations for the Trout 3D seismic program. A significant portion of the seismic labour force and equipment are coming from the Peerless Trout First Nation and we are looking forward to working with them on this project, which is located on their Traditional Lands. By making arrangements for a $3 million credit facility Cougar can aggressively proceed with contracting equipment for the multi-well drilling project. It is anticipated the credit facility will be paid off using the proceeds from a planned equity financing. The anticipated success of the seismic, drilling and production projects will allow Cougar to continue towards the previously stated corporate production objective of 2000 bbl/d."