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CALGARY, March 1, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) announces that it has today filed its unaudited Condensed Interim Consolidated Financial Statements for the three and nine month periods ended December 31, 2011 and the related Management's Discussion and Analysis on www.sedar.com.
In Alberta, Contact is pleased to announce that the Company and its partners spud the Montney well on February 9, 2012 and that drilling is proceeding as planned to date. Following the drilling and completion of this well, Contact will have a 25% interest in 16 contiguous sections associated with this play in the Kakwa-Resthaven area of central Alberta. The well has a planned horizontal leg designed to reach a minimum of 1,000 metres in length and is currently drilling ahead just below 3,000m where the well is now being steered from vertical to horizontal. Contact anticipates that the drilling of this well will be finalized by mid-April 2012 with well completion (stimulation and testing) to be completed in June 2012 shortly after spring break-up.
In New Brunswick, Contact has been working to address potential expiry issues on certain of its lands. The Company is pleased to report that following in depth discussions with the New Brunswick government, extensions have been granted on all prospective oil and gas lands held by the Company in New Brunswick, such that all of Contact's New Brunswick lands have been retained. In particular, leases which are prospective for oil near the B-55 Hopewell well (see the Company's September 29, 2011 news release) have been secured until early 2014 and lands prospective for natural gas have been secured until 2017. These extensions provide Contact with sufficient time to plan and carry out operational programs on certain of its New Brunswick acreage.
With the introduction of a new environmental approval process in New Brunswick in the spring of 2011, additional drilling by the Company in the Stoney Creek oil field was delayed. A new environmental impact assessment for Stoney Creek has been prepared by the Company and submitted for approval to the New Brunswick Government. This assessment contemplates the drilling of additional development wells at Stoney Creek, currently slated for early summer 2012. Contact remains very encouraged by the results of its 2010 horizontal drilling program at Stoney Creek and wishes to advance the new development drilling program as quickly as practicable. In this regard, Contact is currently working to secure all necessary equipment for the upcoming operational program, pending regulatory approval to proceed with the program.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
ADVISORY ON FORWARD LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the timing to drill and complete its Montney well in the Resthaven-Kakwa area of Alberta, the timing of future development drilling on its Stoney Creek property in New Brunswick and the timing of regulatory approval of such Stoney Creek development drilling, among others.
Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. Although Contact believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Resthaven-Kakwa or Stoney Creek prospects will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations at Resthaven-Kakwa or Stoney Creek; that drilling operations in Resthaven-Kakwa or Stoney Creek will be successful such that further development activities in these areas are warranted; that Contact will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Contact's reserve volumes; the general stability of the economic and political environment in which Contact operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Contact to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Contact operates; and the ability of Contact to successfully market its oil and natural gas products.
Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Contact or by third party operators of Contact's properties, increased debt levels or debt service requirements; inaccurate estimation of Contact's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Contact's public disclosure documents. Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management Discussion and Analysis prepared for the year ended March 31, 2011. The reader is cautioned not to place undue reliance on this forward-looking information. The forward looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations 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.
Neither 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 release.
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