NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUE A VIOLATION OF UNITED STATES SECURITIES LAW
CALGARY, Jan. 26, 2012 /CNW/ - First Mountain Exploration Ltd. ("First
Mountain" or the "Company") (TSX Venture: FMX) is providing an
operational update with respect to its winter drilling program
including recent drilling activity at Buck Lake.
At Buck Lake, First Mountain has successfully conducted the fracture
stimulation and flow testing of a Cardium horizontal light oil well
located at 9-22-46-6W5 (the "well"). During the 72 hour flow testing
and flare period allowed by regulatory authorities, the majority of the
frac oil used to stimulate the well was recovered. The well is
currently being equipped for production with oil storage tanks and a
gas conservation pipeline. After a 14 day shut in period, to obtain a
stabilized reservoir pressure as per EUB regulations, the well will be
placed on production and an extended flow test conducted. First
Mountain has a 50% working interest in the well.
First Mountain is in the process of licensing the first 3 wells in the
Faust area. The licenses are expected to be received by the end of the
month. A drilling rig has been contracted and the first well is
expected to spud the week of February 6th. The wells will target seismic anomalies in the Bluesky, Pekisko and
Keg River formations. First Mountain has 100% Working Interest in 75
contiguous sections of land in the Faust area.
The board of directors of the Company (the "Board") has approved the
granting of options to the board, employees and consultants. Stock
options were issued under the stock option plan approved by the
shareholders. A total of 2.45 million stock options were issued at an
exercise price of $0.60, 59% of which were issued to insiders.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words "will", "expects", "believe",
"plans", "potential" and similar expressions are intended to identify
forward-looking statements or information. More particularly and
without limitation, this press release contains forward looking statements and information concerning: the
timing of when the Buck Lake well will be put on production, the timing
of the receipt of required drilling licenses, the timing of First
Mountain's operations and statements with regards to the drilling
targets of First Mountain.
The forward-looking statements and information in this press release are
based on certain key expectations and assumptions made by First
Mountain, including the receipt, in a timely manner, of regulatory and other required approvals and licenses. Although First Mountain
believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue
reliance should not be placed on the forward-looking statements and
information because First Mountain can give no assurance that they will
prove to be correct.
Since forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the risks associated with the oil and
gas industry in general such as operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates;
the uncertainty of estimates and projections relating to reserves,
resources, production, costs and expenses; health, safety and
environmental risks; commodity price and exchange rate fluctuations;
marketing and transportation; loss of markets; environmental risks;
competition; incorrect assessment of the value of acquisitions; failure
to realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations, actual production from the acquired assets
may be greater or less than estimates; failure to obtain the necessary
regulatory approval, stock exchange and other regulatory approvals on
the timelines planned.. Management has included the above summary of assumptions and risks
related to forward looking information provided in this press release
in order to provide securityholders with a more complete perspective on
First Mountain's future operations and such information may not be
appropriate for other purposes.
The forward-looking statements and information contained in this press
release are made as of the date hereof and First Mountain undertakes no
obligation to update publicly or revise any forward-looking statements
or information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
SOURCE First Mountain Exploration Ltd.
For further information:
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: (403) 453-2266