Cougar O&G Acquires Assets in Alberta
Cougar O&G has closed the acquisition of several operated and non-operated oil and natural gas properties ("Properties") in Alberta.
Cougar acquired the Properties from a private company. The Properties include the following assets:
- 4 producing non-operated CBM gas wellsand associated gathering and production facilities located in Central Alberta with a net production of approximately 25 BOEPD.
- 3 suspended Cardium oil wells located in central Alberta with the potential to reactivate 2 of the wells this summer for an estimated net production of 25bbl per day. The wells are also located in an area that has recently proven successful for horizontal Cardium oil development.
- 5 standing natural gas wells in central and southern Alberta. These wells require additional workover and/or tie-in work and will be evaluated for development, farmout or divestiture.
- 3200 net acres of mineral rights adjacent to Cougar's oil producing Alexander property. These mineral rights include all P&NG rights and will be evaluated for oil production potential.
On April 25. 2011 Cougar received notification that the ERCB had approved the transfer of the operated wellbores included in the acquisition of the Properties. Payment for the Properties included Cougar assuming the abandonment liability for the Properties and forgiving an outstanding Accounts Receivable from the private company.
Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "We are delighted that this asset acquisition has closed. The acquisition did not have a debt or equity cost to the Corporation and it had an immediate strategic value. It provides access to a defined Cardium horizontal oil prospect, a profitable CBM natural gas production field with a long reserve life and an undeveloped land base close to our Alexander oil prospect.
"In the Trout production area, the horizontal well continues to steadily improve as the drilling fluid lost to the formation is recovered. The reservoir pressure is increasing and the fluid level in the wellbore continues to increase. A temporary hydraulic pump jack was installed on the well just prior to breakup and once the lease conditions dry up we hope to replace that with an electric submersible pump which will result in the higher production rate required to properly evaluate the well.
"The geological and geophysical work continues regarding the evaluation of the new Trout 3D seismic data shot in January and within the next two weeks we plan to kick off the permitting of a Q3 multiwell oil drilling program."