VANCOUVER, Dec. 21 /CNW/ - Bighorn Petroleum Ltd. (TSXV: BHP, "Bighorn"),
Flying A Petroleum Ltd. (TSXV: FAB, "Flying A"), Tenaka Drilling Consortium
Ltd. ("Tenaka") and Wyn Developments Inc. (TSXV: WL, FWB: YXE, OTCBB: WYDPF,
"Wyn"), (collectively the "Partners"), continue efforts to complete the
amalgamation into Canada Gas Corp. (the 'Company") as soon as possible. Recent
efforts have concentrated on financing the Company to meet near term
commitments, which include both drilling and acquisition. Focus Energy Trust
has now drilled the first well of the 2007/2008 winter season, the
a-38-A/94-G-15 Triassic Halfway development well at Bougie Trutch. The well is
now undergoing testing and completion and upon success, will be tied into
production prior to the end of the 2007/2008 winter drill season (Q1 2008).
Wyn Developments Inc. and Flying A Petroleum Ltd. announce that they have
each entered into bridge loan agreements with a third party investor for the
total loan sum of $200,000, subject to regulatory approval where required.
Pursuant to the Wyn bridge loan agreement, the lender agreed to lend a total
of $92,000 to Wyn. Wyn has agreed to issue the lender 92,000 of its common
shares as a bonus at a deemed price of $0.10 per share, issuable upon receipt
of regulatory acceptance of the Wyn bridge loan agreement. Pursuant to the
Flying A bridge loan agreement, the lender agreed to lend a total of $108,000
to Flying A. Flying A agreed to issue 108,000 of its common shares to the
lender as a bonus at a deemed price of $0.10 per share, issuable upon receipt
of regulatory acceptance of the Flying A bridge loan agreement. The Wyn and
Flying A loans are repayable upon the earlier of the completion of an equity
financing by Canada Gas Corp. (the merged entity) and April 30, 2008. The
bridge loans bear interest at 12% per annum.
Discussions are ongoing among the Partners with a number of interested
investor groups respecting the form and terms of an equity financing for
Canada Gas Corp, however, the Partners will now finalize the share exchange
ratios and seek conditional Toronto Venture Exchange acceptance of the
transaction. The shareholder information circulars outlining the entire
transaction with prospectus level disclosure will be distributed as soon as
possible thereafter, ahead of shareholder meetings to be scheduled at least 25
days from mailing. After the meetings, the Partners will require court and
final Exchange approval prior to the Company being called to trade.
ABOUT CANADA GAS CORP.
The Partners are currently active in three natural gas projects; the
Prophet River, Bougie Trutch, and Trutch East natural gas development
projects, all located in the Foothills region of the prolific natural gas
bearing Western Canadian Sedimentary Basin, northeastern British Columbia,
Canada. The Western Canadian Sedimentary Basin is home to many world-class oil
and gas fields, and features extensive logistical infrastructure. The combined
assets of Canada Gas Corp. will include:
- A combined revenue stream from existing wells in production.
- A 100% interest in the core asset, the 21 square mile Prophet
- A 100% interest in the recently drilled d-60-E/94-G-15
Prophet River well, which as previously announced, yielded an
initial unstabilized gas flow of up to 7.943 MMcf.d. from the
Mississippian Horizon and excellent gas detection in the
Triassic Halfway Formation. This well has been confirmed a
'new pool discovery' by the British Columbia Oil and Gas
- A 100% ownership of the Prophet River 3D seismic data.
- A 19.5% to 32.5% gross working interest in the Bougie Trutch
and Trutch East lands, including a third party overriding
royalty, subject to various terms.
- A 19.5% to 32.5% gross working interest 6 Triassic Halfway
Formation wells: Three Triassic Halfway wells producing since
February 2007, one well currently shut-in, one suspended, and
one currently undergoing testing and completion (a-38-A).
- A 32.5% interest in 14,217 meters of six inch pipeline from
the Tommy Lake field to Trutch East and Bougie Trutch lands.
- Milestone third party bonuses and stock payments from third
parties for successful tie-in on the Trutch East lands.
- A combination of approximately $37 million in gross tax
pools, plus government royalty and exploration credits.
- A British Columbia Oil and Gas Commission issued Operator's
Mr. Thomas W. Bainbridge P.Geol., is the qualified consultant for the
Company's natural gas projects and has reviewed and verified the contents of
this news release.
Mr. A.J. Shah, P.Eng, of Reliance Engineering Group Ltd. has prepared
these reserves evaluations in compliance with national instrument 51-101
For more information on the Partners, please visit
www.wyndevelopments.ca, www.bighornpetroleum.com and www.flyingapetroleum.com.
For more information on Canada Gas Corp., visit www.canadagas.ca.
On Behalf of the respective boards,
WYN DEVELOPMENTS INC. FLYING A PETROLEUM INC.
"David McMillan" "Nash Meghji"
David McMillan Nash Meghji
President & CEO President and CEO
BIGHORN PETROLEUM LTD. TENAKA DRILLING CONSORTIUM LTD.
"Darren Stevenson" "Alistair MacLennan"
Darren Stevenson Alistair MacLennan
President & CEO President and CEO
COMPANY CONTACT INFORMATION
BIGHORN PETROLEUM LTD.
Suite 605, 535 Howe Street
Vancouver, B.C. Canada V6C 2Z4
Tel: (604) 683-7837
Fax: (604) 683-7881
FLYING A PETROLEUM LTD.
Penthouse, 535 Howe Street
Vancouver, B.C. Canada V6C 2Z4
Tel: (604) 683-0466
Fax: (604) 685-8474
Toll Free: (800) 665-3250
TENAKA DRILLING CONSORTIUM LTD.
Suite 718-744 West Hastings st.
Vancouver, BC, Canada V6C 1A5
Tel: (604) 684-1007
Fax: (604) 684-3033
WYN DEVELOPMENTS INC.
Wyn Developments Inc.
520 - 700 West Pender Street
Vancouver, BC, V6C 1G8
(604) 685-5851 or Toll Free: (888) 685-5851
Fax: (604) 685-7349
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including
expectations of future production. More particularly, this press release
contains statements concerning the Partners' future production estimates,
expansion of oil and gas property interests, exploration and development
drilling, regulatory applications, payout estimates, capital expenditures, and
drilling locations to be drilled in 2007/2008. These statements are based on
current expectations that involve a number of risks and uncertainties, which
could cause actual results to differ from those anticipated. These risks
include, but are not limited to: the risks associated with the oil and gas
industry (e.g., operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), commodity price, price and exchange
rate fluctuation and uncertainties resulting from potential delays or changes
in plans with respect to exploration or development projects or capital
expenditures. Additional information on these and other factors that could
affect the Partners' operations or financial results are included in the
Partners' reports on file with Canadian securities regulatory authorities. The
forward-looking statements or information contained in this news release are
made as of the date hereof and the Partners undertake no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws. Oil and Gas Advisory. This press release may
contain disclosure expressed as "boe". All oil and natural gas equivalency
volumes have been derived using the ratio of six thousand cubic feet of
natural gas to one barrel of oil. Equivalency measures may be misleading,
particularly if used in isolation. A conversion ratio of six thousand cubic
feet of natural gas to one barrel of oil is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the well head. 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: Chad McMillan, Dave McMillan, (604) 685-5851,
or Toll Free: (888) 685-5851, Email: email@example.com