Great Plains Consolidates Northeast BC Position with Strategic Acquisition



    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICES/

    CALGARY, Sept. 4 /CNW/ - Great Plains Exploration Inc. (TSX-GPX) is
pleased to announce that it has entered into agreements to acquire production,
facilities, undeveloped lands and a large exploration block in Northeastern
British Columbia. Total consideration for the package was $11.0 million, which
included a $6.0 million asset purchase in the Klua area and a $5.0 million
exploration commitment in the Greater Sierra area.
    The Klua assets include approximately 340 BOE/d of production from a
reserve base estimated at 510,000 proved plus probable BOEs. Facilities
include 55 km of gathering lines and an operated sour gas plant with current
capacity of 10 mmcf/d which can be expanded to 20 mmcf/d. This underutilized
capability in both the plant and gathering system offers capacity for
re-completion opportunities as well as new drilling and future shale gas
development. Exploration acreage in the Klua package totals 34,000 net acres
valued by Great Plains management at approximately $4.0 million based on
prevailing area prices and prospectivity for exploration. The Great Plains
technical team believes that there is potential to find prospects from 3 to
20 bcf in size and has already identified a drill-ready Keg River prospect
which is summer accessible. This transaction has now closed with an effective
date of August 1, 2008.
    The $5.0 million exploration commitment is due October 1, 2008 and
requires that Great Plains participates in either the drilling of exploration
wells or the shooting of 3D seismic. Great Plains has been granted an
exclusive option to farm-in on and explore a 370,000 (net) acre block over a
two year period which is renewable for a further two years with an additional
exploration commitment. This exploration block is complimentary to Great
Plains' existing interests in Northeast BC and numerous drilling locations and
exploration leads have already been identified by the Great Plains technical
team.
    The transaction as a whole offers an optimum mix of production with
exploration upside and provides an excellent opportunity for Great Plains to
consolidate its area position and build upon the RedStar acquisition which was
completed earlier this year. Budgeted expenditures and drilling plans for
Great Plains overall are currently under review with some re-allocation
expected away from Alberta and into Northeast BC.
    Funding for this transaction was provided through existing credit
facilities which are now drawn by $19.7 million against lines of
$33.0 million, plus an acquisition line of $14.0 million. With the addition of
the Klua assets, total corporate production now stands at approximately
1,950 BOE/d with an estimated 1,000 BOE/d behind pipe. Great Plains expects to
see further production increases over the next few months as new projects come
on-stream, including the Company's most recent oil discovery at Crossfire.
    Great Plains still maintains a forward debt/cash flow ratio of below
1.3/1 after this transaction and will continue to access accretive
acquisitions and impact exploration opportunities as drivers for growth.

    Reader Advisory

    This news release contains forward-looking statements which include, but
are not limited to: operations plans and outlook, expectations, the effect of
the transaction, timing of matters relating to the approval and implementation
of the transaction, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although the Companies believe
that the expectations reflected in such forward-looking statements are
reasonable, they cannot give any assurance that such expectations will prove
to be correct or that the proposed transaction will be completed or required
shareholder and regulatory approvals will be received. Results of the
Companies may be affected by a variety of variables and risks associated with
oil and gas exploration, production and transportation, such as loss of
market, volatility of oil and gas prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other producers,
ability to access sufficient debt and equity capital from internal and
external sources, ability to replace and expand oil and gas reserves, ability
to generate sufficient cash flow from operations to meet its current and
future obligations, and risks associated with existing and potential future
lawsuits and regulatory actions made against the Companies; as a consequence,
actual results could differ materially from those anticipated or implied in
the forward-looking statements.
    The Companies' forward-looking statements are expressly qualified in
their entirety by this cautionary statement and are made as of the date of
this news release. Unless otherwise required by applicable securities laws,
the Companies do not intend nor do they undertake any obligation to update or
review any forward-looking statements to reflect subsequent information,
event, results or circumstances or otherwise, except as may be required by
applicable securities laws.

    
    The TSX has neither approved nor disapproved of the contents of this
    press release.
    

    %SEDAR: 00020740E




For further information:

For further information: Great Plains Exploration Inc., Stephen P.
Gibson, President & CEO, Sean Bovingdon, VP Finance & CFO, Tel: (403)
262-9620, Fax: (403) 262-9622, www.greatplainsexp.com,
info@greatplainsexp.com

Organization Profile

GREAT PLAINS EXPLORATION INC.

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