CALGARY, Sept. 9, 2011 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") is pleased to announce that the Corporation has entered into a
subordination agreement to participate in a farmout agreement to drill
two test wells in the Sylvan Lake Area of Alberta with Solara
The subordination agreement provides Carmen with an undivided 25%
interest in two test wells and the farmout lands. In order to earn the
25% interest, Carmen is obligated to pay 25% of the total cost to
drill, case and complete, or abandon, as the case may be, the test
wells to contract depth.
The Sylvan Lake Area prospect is subject to Crown Royalties and a
convertible sliding scale overriding royalty on the first well of 1/150
(5% minimum - 12% maximum) on crude oil and 12% on all other petroleum
substances is payable to the Farmor. On the second well a convertible
sliding scale overriding royalty of 1/150 (5% minimum - 10% maximum) on
crude oil and 10% on all other petroleum substances is payable to the
Farmor. The Farmor has the option to convert the overriding royalty,
prior to equip and tie-in to a 40% and 35% working interest,
Drilling has commenced on the first test well and it is expected to be
drilled and evaluated by late September. The second test well is
scheduled to spud in September.
Carmen Energy President and Chief Executive Officer, Brian Doherty
stated that, "The Sylvan Lake area has seen over the past several
years, a number of noteworthy Leduc discoveries. Those recent wells and
discoveries have provided us a number of geological and geophysical
analogies that assisted in evaluating this opportunity. We are very
pleased to be able to participate in such a strongly supported Leduc
About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas
exploration and production company. The focus is on exploration and
development of Western Canadian Sedimentary Basin based oil and gas
properties. The current projects are the Jumpbush properties in south
eastern Alberta, the Ferrybank properties in central Alberta and the
Hamburg properties in northern western Alberta.
Neither the Exchange nor its Regulation Service Provider (as that term
is defined in the policies of the Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information
includes, among other things, the expected timing and evaluation of the
first test well, the spud date of the second test well and information
with respect to the Corporation's beliefs, plans, expectations,
anticipations, estimates and intentions and the activities of the
Corporation after the Transaction. The words "may", "could", "should",
"would", "suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and expressions
are used to identify forward-looking information. The forward-looking
information in this news release describes the Corporation's
expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events.
Material factors which could cause actual results or events to differ
materially from such forward-looking information include, among others,
risks arising from general economic conditions and adverse industry
events, risks arising from operations generally, reliance on
contractual rights such as licences and leases in the conduct of its
business, reliance on third parties, reliance on key personnel,
possible failure of the business model or business plan or the
inability to implement the business model or business plan as planned,
competition, environmental matters, and insurance or lack thereof.
The Corporation cautions that the foregoing list of material factors is
not exhaustive. When relying on the Corporation's forward-looking
information to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. The Corporation has assumed a certain progression, which may
not be realized. It has also assumed that the material factors
referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is
subject to change and there can be no assurance that such assumptions
will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER
DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO
UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Carmen Energy Inc
For further information:
President and Chief Executive Officer