MOO: TSX Venture Exchange
CALGARY, April 29 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased
to announce the results of its year-long efforts to map a large, shale gas
opportunity in northern Alberta.
Mooncor has received National Instrument 51-101 compliant reports from
its Independent Qualified Reserves Evaluator, DeGolyer and MacNaughton Canada
Limited. The first report provides an estimate of Contingent Resources and the
second report provides an estimate of Prospective Resources for Mooncor's
Hamburg area Devonian shale gas play. These reports can be accessed
electronically from the SEDAR system at www.sedar.com.
Mooncor is now able to confirm the southeastward extension of the massive
Horn River Muskwa shale gas discovery from northern British Columbia through
to northwestern Alberta, including Mooncor's recently acquired Hamburg
property. This confirmation is based on detailed geological mapping, gas
detection review, petrographic analysis and, most importantly, the actual
occurrence of gas and pressure in Mooncor's Hamburg Muskwa shale system.
Mooncor initiated a land banking program last fall that led to the
accumulation of the previously announced 89 sections of land (56,960 net
acres) in Alberta. The location of Mooncor's lands in the Hamburg area may be
viewed on the company's website (www.mooncor.com).
Horn River vs. Mooncor's Hamburg Lands
The Hamburg area has been previously drilled for deeper targets and as
such Mooncor's development program will involve virtually no exploration risk,
as the Muskwa shale is now known to occur throughout Mooncor's entire land
position. The Muskwa shales at Hamburg occur in the range of 12 - 25 metres in
thickness, about half the thickness of the Muskwa Shales at Horn River.
However, pressure analysis at Hamburg shows the Muskwa shales to have greater
than 1 microdarcy of permeability, representing large multiples to the 150 to
450 nanodarcies reportedly occurring in the Horn River shales. The
petrographic comparison between 4 wells in the Muskwa shales in each area
shows Mooncor's Hamburg area shales to be comparable to the excellent
gas-producing Muskwa shales in the Horn River area. Hamburg and Horn River
Muskwa shales should, therefore, have similar rock properties of temperature,
pressure, and gas saturation, although Hamburg shales may have better
porosity, due to their reportedly 3-5 times higher siltstone content. Based on
a geological perspective, the Horn River and Hamburg Muskwa shales occur
within the same formation, consist of similar rocks, and are located at
similar depths, with the same depositional history within the same basin and,
therefore, should be considered part of the same shale gas system. These
similarities between Hamburg and Horn River Muskwa shales led to the
expectation that both areas should have similar gas contents for the Muskwa
Hamburg Test Results (6-34-94-12W6)
Mooncor management was extremely encouraged to have gas flow and pressure
response from the Muskwa shales at Hamburg after perforation and prior to
fracture stimulation during Mooncor's recent recompletion operations this past
winter. Gas flow and pressure response increased significantly on fracture
stimulation. A comparatively small energized frac program was undertaken on
the pilot well and flowed at rates exceeding 1.0 million cubic feet per day.
Further assessment on the 500-foot thick Fort Simpson shale formation at
Hamburg is ongoing. DeGolyer and MacNaughton Canada Limited has provided a
National Instrument 51-101 compliant estimate of Contingent plus Prospective
Resources for Mooncor at Hamburg of up to 5.19 TCF Total Original
Gas-in-Place. The total Contingent plus Prospective Recoverable Gas-in-Place
is estimated to be up to 1.35 TCF.
Mooncor's future development program for Hamburg is presently under
review. It is expected to focus heavily on horizontal drainage and delivery to
the vastly under-utilized infrastructure available in the area. As an
historically well developed area, Hamburg has both winter and summer
accessibility, as well as proximity to all needed supplies and services.
Development capital requirements are, therefore, expected to be significantly
lower than the Horn River Basin and will provide attractive payout and
investment returns, assuming current low price forecasts for natural gas.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and
development company with unconventional shale gas, light oil and heavy oil
projects in Saskatchewan, Alberta and southwestern Ontario. Mooncor is
focusing on its shale gas opportunities with a current emphasis on the high
impact proven shale gas play at Hamburg, Hamburg is Mooncor's newly discovered
southeast extension of the Horn River Basin Muskwa shale system into northwest
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.
For further information:
For further information: Richard Cohen, Vice-President (Corporate
Development), Mooncor Oil and Gas Corp., Tel: (905) 882-4422,
firstname.lastname@example.org; Jason Monaco, First Canadian Capital Corp., Tel: (416)