MOO: TSX Venture Exchange
CALGARY, Jan. 8 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased to announce that it has completed the assembly of its land package in Southwest Ontario by purchasing 18,737 acres (18,592 net) within the Kent and Lambton Counties of Southwest Ontario from a large multi-national oil and gas company for $100,000. The leases acquired are immediately adjacent to Mooncor's original 3,833 acre land position. The leases acquired were prepaid to end of term, the majority of which expiring in late 2011.
Mooncor has identified six Silurian pinnacle drilling locations on its original 3,833 acre land position based on geological mapping and gravity work. The acquired leases also provide Mooncor with additional Silurian pinnacle prospects as well as several potential oil offset locations. The primary conventional plays for lands within the Kent and Lambton County area are the Ordovician, Silurian - Salina and Devonian. The unconventional plays include the Kettle Point Formation (Antrim style shale gas zones) and the Collingwood/Blue Mountain Formation (Utica shale gas zones).
The Ontario government has recently completed a high resolution aeromag survey over lands that cover the recently purchased land position as well as Mooncor's original land position. The aeromag survey is now available to exploration companies. A review of this survey over the newly acquired lands is underway.
Mooncor believes that Ontario is an attractive exploration environment due to high producer netbacks, low royalties and leasing costs, access to exploration data, low transportation costs, easy road access and numerous untested prospects. In addition, Mooncor believes Ontario will benefit tremendously by application of advanced seismic techniques and the implementation of improved drilling, completion and logging tools.
Mooncor is currently in negotiations with several entities in connection with a proposed spinoff of its Southwest Ontario assets into another public company. Further details will be communicated in due course, as appropriate.
Divesting of Crossfield, Alberta
Mooncor has also divested its interests in the Crossfield, Alberta property to a private oil and gas company. The effective date of the transaction is January 7, 2010. Net proceeds from the sale are $146,667.
Additional Disclosure to Previous News Release
The January 6, 2010 news release referred to Contingent plus Prospective Resources of up to 10.57 trillion cubic feet (TCF) of Original Gas-in-Place. This total should have been referred to as discovered and undiscovered resources. The news release disclosed Contingent plus Prospective Recoverable Gas-in-Place of up to 2.57 TCF. This quantity included high estimates of contingent resources of 1.58 TCF and prospective resources of 0.99 TCF. The best estimates were contingent resources of 0.36 TCF and prospective resources of 0.11 TCF. The Contingent Resources should be regarded only as estimates that may change as further production history and additional information become available. The Prospective Resources estimated are those quantities of petroleum that are potentially recoverable from accumulations yet to be discovered and are not provided as a means of comparison to contingent resources or reserves. The quantities that might actually be recovered may differ significantly from the estimates provided. The effective date of the DeGolyer and MacNaughton Canada Limited estimates was November 30, 2009.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development company. Mooncor is focusing on its shale gas opportunities with a current emphasis on its high impact proven Muskwa shale gas play at Hamburg, Alberta as well as structuring a spinoff of the Company's southwest Ontario assets into a new entity.
The contingent resources estimated herein are those volumes of petroleum that are potentially recoverable from the known accumulation but which are not currently considered to be commercially recoverable. Because of the uncertainty of commerciality, the contingent resources estimated herein cannot be classified as reserves. The contingent resources estimates in this report are provided as a means of comparison to other contingent resources and do not provide a means of direct comparison to reserves. The contingent resources estimated in the DeGolyer and MacNaughton Canada Limited report have an economic status of "Undetermined."
The prospective resources estimated herein are those quantities of petroleum that are potentially recoverable from prospects yet to be discovered. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, the prospective resources estimated herein cannot be classified as contingent resources or reserves. The prospective resources estimates in this report are not provided as a means of comparison to contingent resources or reserves. There is no certainty that any portion of the prospective resources estimated herein will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated.
There is no certainty that it will be commercially viable to produce any portion of the resources.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mooncor Oil and Gas Corp.
For further information: For further information: Richard Cohen, Vice-President (Corporate Development), Mooncor Oil & Gas Corp., Tel: (905) 882-4422, firstname.lastname@example.org; Jason Monaco, First Canadian Capital Corp., Tel: (416) 742-5600, email@example.com