Seven Generations Energy Ltd. Acquires 118 Net Sections of Additional Montney Lands
CALGARY, April 7, 2014 /CNW/ - Seven Generations Energy Ltd. ("7G" or the "Company") is pleased to announce that since the beginning of 2014, it has, through several separate purchase and swap transactions, increased its Montney land holdings by a net 118 sections. The net cost to 7G for these transactions was approximately $29.5 million cash and other consideration. The acquisitions also include a road accessing 7G's core lands between the Kakwa and Smoky Rivers.
7G's net land holdings (all in the Kakwa River Project area) are now approximately 547 sections, including 516 sections (approximate) of petroleum and natural gas rights in the Montney formation, a net increase of 29% since the beginning of 2014. Most of the newly acquired land is proximal to the Company's existing acreage.
By 7G's management's estimate, the Company now has 50% confidence in ultimately being able to recover 25 or more trillion cubic feet of marketable gas and more than 2.6 billion barrels of liquids from the Kakwa River Project. 7G's CEO, Pat Carlson, said, "In today's over-supplied gas market, having transportation and marketing options is an important risk mitigation. The increased resource potential represented by the new lands enables the Company to consider whatever additional infrastructure investments might be required to ensure market access."
Seven Generations Energy Ltd. is a private oil and gas developer with its corporate headquarters in Calgary, Alberta and its operations headquarters in Grande Prairie, Alberta. 7G is engaged in the delineation and development of its Kakwa River Project, a multi-zone, tight, rich gas project in the Alberta Deep Basin, approximately 100km south of Grande Prairie.
This press release may contain forward-looking information and statements regarding the Company. Any statements included in this press release that address activities, events or developments that the Company "expects," "believes," "plans," "projects," "estimates" or "anticipates" will or may occur in the future are forward-looking statements. Actual results may differ materially due to a variety of important factors. Among other items, such factors might include: planned and unplanned capital expenditures; changes in general economic conditions; uncertainties in reserve, resource and production estimates; unanticipated recovery or production problems; weather-related interference with business operations; the effects of delays in completion of, or shut-ins of, gas and liquids gathering systems, pipelines and processing facilities; potential costs associated with complying with new or modified regulations; oil and natural gas prices and competition; the impact of derivative positions; production expense estimates; cash flow and cash flow estimates; drilling and operating risks; our ability to replace oil and gas reserves; volatility in the financial and credit markets or in oil and natural gas prices. Except as required by law, the Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change. Do not place undue reliance on forward-looking information.
SOURCE Seven Generations Energy Ltd.For further information: For more information please call: Pat Carlson, CEO, 403-718-0700