Trading Symbol: KEE:TSX-VEN
Shares Outstanding: 32,298,075
CALGARY, Feb. 6 /CNW/ - Keeper Resources Inc. is pleased to announce an
operational update of the Company's ongoing activities.
On May 3, 2005, Keeper entered into a Memorandum of Understanding (MOU)
with PetroVietnam Investment & Development Company, a subsidiary of
PetroVietnam. Under the MOU, the Company conducted a review of all existing
geological data of a study area in the Red River Basin to determine its
potential for commercial coal bed methane (CBM) production.
Keeper is currently negotiating a CBM production sharing contract with
PetroVietnam for a contract area that would include the study area referenced
above. The negotiations are expected to be completed during the second quarter
On April 5, 2006, the Company signed a production sharing contract with
Pogo Producing Company (now Plains Exploration and Production Company
("Plains")) and Vietnam Oil and Gas Corp. ("PetroVietnam") for hydrocarbon
exploration and production from Block 124, offshore Vietnam, in the Phu Khanh
basin. The Company assigned its 25% working interest to Plains in return for a
5% gross overriding royalty ("GOR") on 100% of the production from Block 124.
Keeper drilled a development well, 06-01-55-12 W5M, in the Niton area. It
was completed in December, swabbed in oil, and is cased as a potential oil
well. Currently the well is shut-in while the required permits are obtained to
set up a temporary single well battery to determine a stabilized production
rate. Once that is ascertained, a pipeline to conserve the solution gas may be
required. Keeper has a 44.7% interest until 300% of the completion costs are
recovered, reverting to a 30% interest until 300% of the drilling costs are
recovered, then reverting to 3% after payout.
In the Meekwap area, Keeper conducted an acid stimulation workover on our
existing horizontal well at 1-32-66-15 W5M, following the workover the well
flowed back equivalent to 240 bbl/d oil over a 9 hour test. A stabilized flow
rate was not achieved and pipeline problems have prevented the well from being
returned to production in January. The pipeline problem is expected to be
resolved the first week of February at which time normal production would
resume. Keeper has a 30.8% interest in the well before payout and a
25.8% interest after payout.
Keeper has a 100% working interest in a section of land in the Gordondale
area with a suspended well drilled by a competitor. Keeper acquired the well,
14-08-80-10 W6M, at a nominal cost and reentered the well in December to
recomplete a zone for light oil. The well swabbed back oil and is currently
shut in for pressure testing. Once this is done, the well will be set up for
production testing to determine a stabilized rate.
In the Bittern Lake area, the Glauconitic zone in the 02/11-14-46-23 W4M
well was abandoned due to high water production. The well was recompleted
uphole in the Colony zone. The initial flow rate was about 1 mmcf/d but has
since dropped to about 300 mcf/d. Keeper has a 45% working interest in the
well until payout and 29.5% after payout.
In the Nevis area a well was put on production from the Horseshoe Canyon
coals at a rate of 170mcf/d. Keeper has a 12.2% working interest in this well.
The Company has a 100% (60% after payout) working interest in a potential
gas well in the Spirit River area. The plan is to complete this well in the
first half of 2008.
In early November 2007, the Company received a proposal regarding a
strategic transaction involving all of the shares of the Company. The Company
is reviewing the proposal and its board of directors has constituted a special
committee to consider the matter further. At this time, there can be no
assurance that any transaction will result.
This press release includes statements identified by the use of the
references "expects" or "plans" or similar words about expected future events
and/or results that are forward-looking in nature and subject to substantial
risks, assumptions and uncertainties that may cause the actual results,
performance or achievements expressed or implied by such forward-looking
statements to differ materially. These risks, assumptions and uncertainties
include but are not limited to petroleum and natural gas price volatility,
regulatory and government decisions, the status of negotiations and
willingness of other parties to continue these negotiations, availability of
labour, services and supplies, market competition, the timing of expenditures,
production levels and the adequacy of funding for capital investments. Keeper
Resources Inc. cautions that actual performance will be affected by a number
of factors, including those referenced above, many of which are beyond its
About Keeper Resources Inc.
Keeper Resources Inc. is an oil and gas exploration company with
operations in Canada and Vietnam. Keeper's corporate philosophy is to develop
lower risk opportunities in Canada while at the same time participating in
higher risk, high impact international petroleum opportunities. This offers
stable revenue in Canada while exposing investors to potentially significant
increases in share value.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Loren Komperdo, P. Geol, President, Telephone:
(403) 265-3365, Facsimile: (403) 265-2223, E-mail: firstname.lastname@example.org;
Paul Lipoth, Corporate Relations, Telephone (403) 265-3365 ext. 233,
Facsimile: (403) 265-2223, Email: email@example.com