TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
ST. JOHN'S, June 23 /CNW/ - Canadian Imperial Venture Corp. ("CIVC") has
entered into an agreement to acquire 100% of the assets of Encore Investments
Ltd. ("Encore"). This transaction gives CIVC an additional net 25 sections of
land in southern Alberta including an interest in a number of producing oil
and gas wells. Some of the lands to be acquired are jointly held between
Encore and CIVC through CIVC's subsidiary company, USG Energy Corp. ("USG").
Encore is a former shareholder of USG and as a result of CIVC's
acquisition of USG in May 2007 Encore holds 17.5 million warrants of CIVC
exercisable at $0.10 per share until May 2009. These warrants will be
cancelled on closing of this deal and CIVC will issue 17.5 million shares to
Encore in exchange for all of the issued and outstanding shares of an Encore
subsidiary thereby transferring title to 100% of the assets of Encore to CIVC.
The cancellation of the 17.5 million CIVC warrants will occur at the same time
as the issuance of the 17.5 million CIVC shares. Therefore, CIVC's total
number of shares on a fully diluted basis will not increase.
The interests to be acquired produced approximately 20 boe per day and
contributed approximately $440,000 in Gross revenue for the year ended 2007,
which amount is expected to increase to between $600,000 and $800,000 per year
due to the significant price jumps for both oil and gas since the first
quarter of 2008.
The lands include developed and undeveloped acreage predominantly in
Alberta at Black Butte, Coutts, Etzikom, Foremost, Forty Mile, Manyberries,
Pakowki, Sapphire, Warner and Yellow Lake. The working interest of the
acquired company averages 22% in developed lands, and 19% in undeveloped
lands. For the most part, CIVC owns the majority interest and will be the
Operator of the undeveloped lands. The acquired total Gross hectares at
Nov. 19, 2007 were approximately 33,270 ha (130 sections), of which
28,318 hectares (110 sections) were undeveloped. Total net acreage
approximates 6450 hectares (25 sections), of which approximatly 5360 hectares
are undeveloped. These amounts may change due to expiries, extensions or
additions up to the close and verification through due diligence that is in
At September 1, 2007 an independent engineering firm, Gilbert Lausten
Jung ("GLJ") had estimated P+P reserves of 50 Mboe net to the producing
assets. An updated, 51-101 compliant reserves evaluation is underway by GLJ
and will be complete by late June / early July.
Property upsides not contained or reviewed in the evaluation could
include additional gas production potential at Manyberries and Coutts from
shut-in or standing wells, development possibilities at Coutts through
equipping non active well bores, recompletions of existing zones and potential
new locations offsetting existing production, re -establishment of water
flooding operations and the potential for uphole reserves. The Coutts pools
have produced in excess of 5MM bbls to date of light, high quality oil and the
operator of the property has extensive 3-D seismic to assist in future
planning for further production enhancements.
The production from the acquired properties will provide CIVC with its
first cash flow from operations in southern Alberta and also provide
opportunities for additional development and exploration. After closing, the
Encore subsidiary will be amalgamated with USG and the combined entity will
have an approximate net land position of 75 sections in southern Alberta.
Canadian Imperial Venture Corp. is an independent Canadian-based energy
company with interests in petroleum exploration and development in western
Newfoundland and in western Canada. Eastern Canada is the home to such
developments as the Hibernia, Terra Nova, White Rose, Sable Island, Deep
Panuke, and McCully fields.
CANADIAN IMPERIAL VENTURE CORP.
Steven Millan, P.Geo.
Chairman and CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE.
This release includes certain forward looking statements which reflect
beliefs, expectations, objectives and goals which are believed to be
reasonable at the time such statements are made. Actual results could differ
materially from anticipated results and may be impacted upon such factors as
commodity prices, political developments, legal decisions, market and economic
conditions, industry competition, the weather, changes in financial markets
and changing legislation.
For further information:
For further information: Canadian Imperial Venture Corp., (709)
739-6700, Fax: (709) 739-6605, email@example.com;