(All amounts are in Canadian dollars, unless stated otherwise)
CALGARY, Aug. 5 /CNW/ - Iteration Energy Ltd. (TSX-ITX) ("Iteration" or
the "Company") announced today the results of its 2009 disposition program. To
date, through a series of transactions the Company has sold $42 million of
properties, prior to closing adjustments. Closing date for the majority of the
dispositions was July 31, 2009. The largest property sold was Wilson Creek in
central Alberta. Other properties include Wild River in west Alberta and three
minor properties in north Alberta. Negotiations are still proceeding on
several smaller properties.
Production for June 2009 for the disposed properties was approximately
1,000 boed (80% gas) with estimated proved reserves of 2.3 million boe and
proved plus probable reserves of 3.2 million boe. Undeveloped land associated
with the dispositions was approximately 12,000 net undeveloped acres. The
Company's lenders have reduced the borrowing base on the credit facility by
$12.5 million to $252.5 million as a result of the dispositions.
Iteration expects to issue second quarter 2009 results on August 13, 2009
and plans to provide updated guidance at that time.
Iteration is an Alberta based corporation engaged in the business of
exploring for and developing oil and natural gas reserves in Western Canada
and acquiring natural resource properties. Iteration's common shares are
listed on the Toronto Stock Exchange under the symbol "ITX".
Natural gas is converted to crude oil equivalent at a ratio of six
thousand cubic feet of natural gas to one barrel of oil equivalent ("boe").
Boe's may be misleading, particularly if used in isolation. A boe conversion
ratio of 6 mcf: 1 boe is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
The TSX has not reviewed this press release and does not accept
responsibility for the accuracy of any of the data presented here-in.
For further information:
For further information: Mr. Brian Illing, President and CEO, or Mr.
Peter Scott, Vice President, Finance and CFO, at (403) 261-6883