CALGARY, March 1 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS)
today announced that it has executed a purchase and sale agreement with a
private oil and gas company for the sale of Mystique's Garrington assets for
4.05 million dollars.
Closing of the sale is scheduled for 2007-03-15. As announced in
Mystique's press releases dated 2006-11-29 and 2007-01-31, proceeds of the
sale will be used to reduce Mystique's debt.
The sale of the Garrington assets will reduce Mystique's production by
85 barrels of oil equivalent per day ("boepd") effective 2007-01-01. As a
result, Mystique's present production will be approximately 440 boepd. Based
on McDaniel & Associates Consultants Ltd. reserves report dated 2006-12-31,
the sale will reduce Mystique's proved plus probable ("P+P") reserves by
257 thousand barrels of oil equivalent ("Mboe") to 2270 Mboe. Mystique's P+P
reserves at the end of 2005 were 905 Mboe. As a result of the sale, Mystique's
P+P reserves life index ("RLI") will increase from 12.6 years to 13.5 years.
As discussed in Mystique's press release dated 2007-01-31, Mystique can
now focus on increasing production over the year by undertaking a number of
low risk development projects.
Rundle Energy Partners (formerly Kobayashi Partners Limited) were
advisors to Mystique on the sale of the Garrington assets.
Based in Calgary, Mystique is involved in the exploration and
exploitation of petroleum reserves in western Canada.
Use of the term barrels of oil equivalent "boe" 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.
Except for statements of historical fact, all statements in this press
release, without limitation, regarding new projects and future plans and
objectives are forward-looking statements which involve risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from those
anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: on Mystique, please contact: Vic Luhowy,
President & Chief Executive Officer, Mystique Energy, Inc., Tel: (403)
261-3634, Fax: (403) 265-3348, firstname.lastname@example.org, Website -