CALGARY, Feb. 23, 2012 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") announces that due to unforeseen cost overruns associated with its Hamburg area, Alberta well (the "Well"), the Corporation, in conjunction with its partner, have amended their participation agreement, previously announced on February 2, 2012.
The revised terms of the participation agreement provide that Petrus Resources Ltd. ("Petrus") will carry one-hundred percent (100%) of the costs associated with the Well to completion, effective 12:00 am Thursday February 16, 2012 and assume operatorship of the Well. Furthermore, in the event that the partners proceed to equip and tie-in the well, Carmen will be responsible for a net ten percent (10%) of the costs, risks, obligations and liabilities associated therein.
Upon Petrus having complied with the terms and conditions of the amended participation agreement, Petrus will have earned a net one hundred percent (100%) interest in the Well and the first option well earning block reserving unto Carmen a net ten percent (10%) carried working interest following payout of a net fifty five percent (55%) of all the costs and expenses associated to the first option well that occur between 12:00 am Thursday February 16, 2012 and the point at which Carmen earns its remaining net ten percent (10%) of the Well by electing to fund ten percent (10%) of the costs to equip and tie-in the Well.
Additionally, Carmen will be entitled to participate as to a net ten percent (10%) working interest in both the second option well and second option blocks in the event of future activity.
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, the Sylvan Lake area properties in Southern Alberta and the Hamburg properties in northern western Alberta.
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, that Carmen will participate in equiping and tie-in of the Well and information with respect to the Corporation's beliefs, plans, expectations, anticipations, estimates and intentions and the activities of the Corporation. 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, the risks associated with the oil and gas industry in general, 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, the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; 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; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
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.
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 press release.
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