CALGARY, Canada, March 7 /CNW/ -- Unbridled Energy Corporation (TSX.V:
UNE) (the "Company" or "Unbridled") is pleased to provide an update concerning
its ongoing corporate developments.
Unbridled is a natural gas evaluation and production company focused on
shale gas and tight gas sand opportunities in two main basins within North
America, the Appalachian Basin in eastern United States and the Western
Canadian Sedimentary Basin.
The Company has now signed a Purchase and Sale Agreement on a producing
tight gas sand property in the Appalachian Basin. This opportunity contains
both tight gas sand and shale reservoirs, in addition to a
naturally-fractured, carbonate oil play in approximately 12,000 acres. The
Company plans to partner 50% working interest ("WI") with HH Allegiance Energy
Fund LLP on this property, an entity at arm's length to the Company.
Acquisition and closing costs will total less than US$1.5 million net to the
Company. It is anticipated closing will take place by March 30, 2007. Post
closing, the Company will provide more details on the producing assets
including reserves, a discussion of the upside potential that has been
identified, and a development plan. This transaction marks the company's
first acquisition of a property with proved developed producing reserves.
State of Ohio
As described in the Company's December 20, 2006 news release, the Company
has under option 15,000 acres in the State of Ohio. Unbridled has now
expanded these lands to a negotiated amount of over 30,000 acres in four
separate Counties in the State of Ohio from Lodge Energy, L.P. ("Lodge"), an
entity at arm's length to the Company. Most of the due diligence on these
lands is now complete. Further, if Unbridled proceeds with the purchase, it
will acquire a right of first refusal on future lands leased by Lodge in all
four counties (now an 'Area of Mutual Interest' between Lodge and Unbridled).
The Company intends to joint venture with one or more other companies and
ultimately hold between 35% and 50% WI in these lands. The subject leases are
purchasable at a net revenue interest of 87.5%, in addition to an average
override of 2.5%. If it proceeds, this will be an all-cash transaction.
The Devonian Shales will be the primary exploitation targets. There are
several shale formations at depths ranging from approximately 250 to 1600 ft
across the acreage for a total organic rich shale gross thickness of 250 to
325 ft. The Company has not drilled any wells, thus there are no reserves to
book currently. The subject shales have produced gas from older wells in the
area, but, in the opinion of the Company's management, inefficient and low
technology completion and production methods were used. The Company will seek
to use to the best technology available in future wells to assess the shale's
commercial potential. This may include the latest technology in horizontal
wells and multi-stage stimulation treatments. In addition to the Devonian
Shale, other formations will be investigated for gas and oil potential.
WESTERN CANADIAN SEDIMENTARY BASIN
Tsuu T'ina area of Alberta
The Company holds a 50% WI in approximately 30,000 acres in the Tsuu
T'ina First Nation (Sarcee Indian) Reserve southwest of Calgary. Three wells
were drilled and two encountered the Horseshoe Canyon coalbed methane and the
Edmonton gas sands at shallow depths. Based on the three test wells, the
Company and its joint venture partner estimate the coals to be present in 20
sections. The coals were present in the first two wells, but were faulted out
in the third well (AAO 102 Sarcee 11-11-23-4W5M). The AAO 102 Sarcee
9-21-23-3W5M well stimulated coalbed methane formations in 24 perforated
intervals. The AAO 102 Sarcee 4-30-23-3-3W5M well stimulated coalbed methane
formations in 15 perforated intervals. Both wells were flow tested for
several months. It is expected that the Edmonton sands will be completed in
the future and then commingled with the coals for a final flow test. The
Company and its joint venture partner are currently evaluating a 3D seismic
survey to deter mine if deeper targets exist in the Lower Cretaceous and
Mississippian formations. Two offset wells within three miles of the property
have produced over 150 Bscf from the Mississippian formation.
Chambers Area of Alberta
The Golden Eagle Energy et al CHAMBERS 3-17-41-11 W5M well (the "3-17
Well"), in which the Company holds a 25% WI has been completed in multiple
formations. The Company and its partners have resolved the outstanding issues
related to bringing the 3-17 Well on to production and now anticipate first
production by May 1, 2007. As announced in the Company's news release dated
November 15, 2006, test rates from this well were 1,750 Mscf/d of gas and 235
bbl/d of condensate.
The Company's next drilling location at Chambers is the new pool wildcat
well located at 16-21-41-11 W5M (the "16-21 Well"). This location was
high-graded with the use of 3D seismic in conjunction with the results of the
3-17 Well. The Company's participating interest in the 16-21 Well is 37%. In
addition, the company and its partners plan to re-enter existing 6-18-41-11
W5M Well, in which the Company has a 50% WI. Plans call for reconfiguring the
production string to provide a higher flow rate from the liquids rich Elkton
formation and the running of a flow line to the 3-17 Well. The 6-18 Elkton
Well tested water free gas at 300 Mscf/d and 20 bbl/d condensate. The
drilling of the 16-21 Well and the re-entry of the 6-18 Well will commence as
soon as possible after spring break-up, probably in June. The Company
estimates that between 8 and 10 additional well locations exist across the
acreage using conventional spacing.
The Company holds an interest in 10,240 acres (16 sections) and an option
on another 3,840 acres (six sections) in the Chambers/Ferrier area. Of note,
is the increased activity in the Chambers area with recent offsetting lands
selling at the February 7th Alberta land sale for over $550,000 per section
and the licensing of 5 new wells.
OTHER AREAS OF CANADA
The Company is currently negotiating with two large Canadian operators to
farm-in on two separate shale and tight gas sand resource opportunities.
Management will provide further information as negotiations progress.
President and CEO Joe Frantz said, "Our current capital raising
activities will allow Unbridled to proceed with our Canadian field operations
at Chambers, evaluate two large natural gas resource plays and close two
important US acquisitions. Cash flow to offset overhead expenses and field
operations should begin in Q2, 2007 and we anticipate substantial additional
cash flow in Q3 and Q4 as we drill new wells in both countries. The Western
Canadian Sedimentary Basin and the Appalachian Basin are our current focus due
to the abundant opportunity management and directors have identified in
stacked tight gas sand and shale reservoirs. There is ample opportunity to
apply new technology to establish significant new reserves and improve
production and profits from these resource plays."
By Order of the Board of Directors
Unbridled Energy Corporation
Joseph H. Frantz Jr.
President & CEO
For more information, please contact the Company's Investor Relations
Consultant at 1-800-940-6781.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release contains certain "forward-looking statements" within
the meaning of Canadian securities legislation, relating to matters such as
the Company's drilling and other exploration and development plans.
Forward-looking statements are statements that are not historical facts; they
are generally, but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects," "aims,"
"potential," "goal," "objective," "prospective," and similar expressions, or
that events or conditions "will," "would," "may," "can," "could" or "should"
occur. Forward-looking statements are based on the beliefs, estimates and
opinions of Unbridled's management on the date the statements are made;
including resource estimates, and they involve numerous risks and
uncertainties. Consequently, there can be no assurances that such statements
will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Unbridled undertakes no
obligation to update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change. Factors that could
cause future results to differ materially from those anticipated in these
forward-looking statements include, but are not limited to receipt of
necessary approval from regulatory bodies, the volatility of natural gas
prices, the possibility that exploration efforts will not yield economically
recoverable quantities of gas, accidents and other risks associated with gas
exploration and development operations, the risk that the Company will
encounter unanticipated geological factors, the Company's need for and ability
to obtain additional financing, the possibility that the Company may not be
able to secure permitting and other governmental clearances necessary to carry
out the Company's exploration and development plans, and the other risk
factors discussed in greater detail in the Company's various filings on SEDAR
(www.sedar.com) with Canadian securities regulators.
For further information:
For further information: Unbridled Energy Corporation Investor Relations