Kootenay Energy Inc. announces asset sale



    CALGARY, Nov. 28 /CNW/ - Kootenay Energy Inc. ("Kootenay") is pleased to
announce that it has entered into a confidential offer to purchase letter
agreement for the sale of certain oil and natural gas assets in southeast
Saskatchewan.
    The sale of approximately 85 boe/d of production for seven million and
one hundred thousand dollars ($7,100,000) effective December 1, 2007 is
scheduled to close prior to year end, subject to normal industry closing
adjustments. The proceeds from the sale will be applied to the reduction of
the Corporation's total debt. The sale is subject to normal industry
conditions, including but not without limitation, regulatory board approval
and the approval of the Corporation's secured lender.
    The sale follows a successful drilling program and the resulting addition
of 110 barrels per day of oil production previously announced on November 22,
2007.
    Following the sale, Kootenay's production will be approximately
435 barrels of oil equivalent per day made up of 95% light oil and 5% natural
gas.
    Kootenay is also participating in a Keg River reef oil well (net 15%) in
the Shekilie, Alberta field. The development well was spud November 18, 2007
and if successful, is anticipated to commence production by year end. The well
is offsetting an earlier November 2005 infill well which had an initial oil
production rate of 500 barrels per day and has cumulative production to date
of 290 mbbls and is currently producing 340 barrels per day.

    The calculations of barrels of oil equivalent ("boe") are based on a
conversion rate of six thousand cubic feet ("mcf") of natural gas to one
barrel of crude oil. Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf: 1 bbl 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 above disclosure contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond the Corporation's control, including: the impact
of general economic conditions in Canada, industry conditions, increased
competition, the lack of available qualified personnel or management,
equipment failures, fluctuations in product prices and in foreign exchange or
interest rates and stock market volatility. The Corporation's actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits the Corporation will derive therefrom.

    THE TSX VENTURE EXCHANGE INC. DOES NOT ACCEPT RESPONSIBILITY FOR THE
    ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

    %SEDAR: 00020600E




For further information:

For further information: Kootenay Energy Inc. - Jack Marsh, President
and Chief Executive Officer, (403) 355-9800

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KOOTENAY ENERGY INC.

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