CALGARY, June 4, 2013 /CNW/ - First Mountain Exploration Ltd. ("First Mountain") (TSX Venture: FMX) is pleased to announce that it has closed the acquisition of certain assets in the Buffalo Atlee area of Alberta (the "Assets") from a private Company for cash consideration of $175,000, before closing adjustments. The effective date of the acquisition was May 1, 2013.
The Assets consist of a 50% operating working interest in 2 producing wells and 1,120 gross acres of land. The Assets are currently producing approximately 22 barrels of oil per day gross and provide First Mountain with 8 to 10 horizontal development drilling locations. First Mountain anticipates that production levels, from this and other acquisitions in the current year, will generate sufficient cash flow to cover overhead costs by year end.
On May 29, 2013, First Mountain filed on SEDAR its condensed interim financial statements ("Financial Statements") and related management's discussion and analysis ("MD&A") for the three months ended March 31, 2013. The condensed interim Financial Statements and MD&A are available for review at www.sedar.com.
Neither the TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning First Mountain's anticipation that cash flow will cover overhead costs by year end and the identification of 8 to 10 horizontal drilling locations.
Although First Mountain believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because First Mountain can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as 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 and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on First Mountain's future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and First Mountain undertakes 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.
Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE: First Mountain Exploration Ltd.
For further information:
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: (403) 453-2266