CALGARY, June 5 /CNW/ - COSTA Energy Inc. ("COSTA" or the "Company")
(TSX Venture - COE) has completed the sale of its Boundary Lake property
effective May 1, 2007 to an independent oil and gas producer for gross
proceeds of $670,000.
The property consists of a 33 1/3% interest in two sections of land and
three producing wells in Northeast BC. McDaniel & Associates Consultants Ltd.
estimated proven plus probable reserves net to COSTA at December 31, 2006,
less net production to April 30, 2007, are approximately 226.4 million cubic
feet of natural gas and 2.9 thousand barrels of natural gas liquids. Current
net production is about 260 thousand cubic feet per day (mcf/d) of natural gas
and 3 barrels per day (bbl/d) of natural gas liquids.
COSTA viewed this non-operated property as fully developed and will use
the net proceeds to reduce its bank debt. The Company's current net
production, without Boundary Lake, is about 400 mcf/d and 25 bbl/d of oil and
natural gas liquids.
COSTA is a Calgary based junior oil and gas company, which explores for,
develops, produces, and sells crude oil, natural gas liquids and natural gas
in Alberta, British Columbia and Saskatchewan.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Requests for shareholder information should be
directed to: Terry D Brooker, President and CEO, COSTA Energy Inc., Calgary,
Alberta, Telephone: (403) 206-3430, Email: email@example.com