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TSX Venture Exchange: AFE
CALGARY, July 15 /CNW/ - Antler Creek Energy Corp. ("Antler Creek" or the "Company") is pleased to announce it has entered into three strategic asset acquisition agreements for an aggregate purchase price of $17.9 million, all of which are located in the Company's greater Red Earth core focus area. The acquisitions will be funded by available cash on hand and are all anticipated to be closed by July 15, 2010.
In total, the Company is acquiring 21,627 gross acres (13,150 net acres) of land located in the heart of the emerging Slave Point formation tight oil play. The assets bring over 50 net low-risk Slave Point horizontal drilling locations along with approximately 70 bbls/d of light oil production and associated producing infrastructure.
The assets are consistent with the Company's strategy of focusing capital on top tier light oil resource style plays in the provinces of Alberta and Saskatchewan, using its considerable in-house technical experience to aggressively exploit the significant upside with latest multi-stage fracturing technology.
With these acquisitions, the Company now has an inventory of over 65 tight oil drilling locations in its two core operating areas targeting the Slave Point in Alberta and the Bakken in Southeastern Saskatchewan. Based on the Company's internal estimates, the acquisitions provide exposure to over 7,500 boepd of net production, using a 3 month initial production average.
The Company will provide further guidance as to its capital plans after its annual general and special meeting which is being held at the Hamilton Room at the Bow Valley Square Conference Centre - 300, 255 - 5th Avenue S.W. Calgary, Alberta on July 21, 2010 at 10:00 am (Calgary time).
The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Antler Creek's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. Antler Creek's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Antler Creek will derive from them. Except as required by law, Antler Creek undertakes no obligation to publicly update or revise any forward-looking statements.
Barrels of Oil Equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6MCF:1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Neither the 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 news release.
SOURCE ANTLER CREEK ENERGY CORP.
For further information: For further information: Antler Creek Energy Corp., Suite 500, 255 - 5th Avenue S.W., Calgary, Alberta, T2P 3G6; Wade Becker, President and CEO, firstname.lastname@example.org or Dan Toews, V.P. Finance & CFO, email@example.com, Tel: (403) 817-2550 or Fax: (403) 817-2599