CALGARY, April 17, 2013 /CNW/ - First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX Venture: FMX) is pleased to announce that it has entered into a definitive agreement to purchase a producing oil and gas property, has acquired 360 acres of Crown oil and gas rights, has made changes to the members of the board of directors of the Company (the "Board") and Audit Committee, has granted stock options to the Board, an officer and an employee, and has appointed a new Corporate Secretary.
The Company has entered into a definitive agreement to purchase (the "Acquisition") certain oil and gas producing properties in the Lanaway and Fir area of Alberta (the "Assets") from a public company (the "Vendor") for cash consideration of approximately $400,000. The Acquisition is expected to close April 30, 2013 with an effective date of April 1, 2013.
The Assets consist of two wells in the Lanaway area of Alberta with working interests of 25% and 39.5% and one well in the Fir area of Alberta with a working interest of 74.75%. The Assets are currently producing approximately 21 boe per day net, consisting primarily of light oil. As well the acquisition includes 512 net acres of land. The Assets are currently being evaluated by GLJ Petroleum Consultants Ltd. as at March 31, 2013 (the "GLJ Report").
The Acquisition is subject to approval of TSX Venture Exchange Inc. (the "Exchange"). There is no guarantee that the Acquisition will be completed.
The Acquisition will be a non-arm's length transaction as an officer and director of First Mountain is also a director of the Vendor.
First Mountain purchased 360 acres of oil and natural gas rights in the Neutral Hills area of Alberta at the April 3, 2013 crown sale. The lands are prospective for Dina oil.
Board and Audit Committee Changes
The Board has appointed Mr. Bill Slipp to the Audit Committee. Mr. Slipp is currently the Vice President, Business Development and Land and is a member of the Board. In addition, First Mountain announces the departure of Mr. Arthur Halleran from the Board and Audit Committee. The Company thanks Mr. Halleran for his contributions and wish him well in his future endeavors.
The Board has approved the granting of stock options to the independent members of the Board, an officer and an employee, subject to the approval of the Exchange. Stock options were issued under the stock option plan approved by the shareholders of the Corporation. A total of 400,000 stock options at an exercise price of $0.10 per share were granted, 75% of which were issued to insiders of the Corporation.
Appointment of Corporate Secretary
The Company is pleased to announce the appointment of Mr. Douglas M. Stuve as the Corporate Secretary of the Corporation effective March 15, 2013. Mr. Stuve is a partner with the law firm Burstall Winger LLP of Calgary, Alberta. Prior to joining Burstall Winger LLP in 1993, Mr. Stuve articled in Toronto with the firm Davies Ward & Beck. Mr. Stuve's principal area of practice is corporate finance and securities law, as well as general corporate commercial law. He is a member of the Securities Law and Business Law Subsections of the Canadian Bar Association (Alberta Branch). Mr. Stuve holds a Bachelor of Arts degree (with distinction) from the University of Alberta and a Bachelor of Laws degree (LL.B) from Queen's University, Kingston, Ontario.
Mr. Stuve has served as a member of an advisory committee to The Alberta Stock Exchange and was part of the advisory committee in Calgary, Alberta to the Canadian Venture Exchange Inc., now TSX Venture Exchange Inc., to assist in formulating policy prior to and after its formation in November 1999.
Mr. Stuve has served as a director of several public companies and is currently Chairman of Athabasca Minerals Inc., and a director of Pivot Technology Solutions, Inc., Border Petroleum Corp., Chelsea Acquisition Corporation and E.G. Capital Inc. Mr. Stuve is a past director of several public companies, including Patfind Inc., the first Capital Pool Company offering completed on the predecessor to TSX Venture, as well as Deepwell Energy Services Trust (TSX), Tesoro Energy Corp. (TSX), Kelso Energy Inc., Colonia Energy Corp., Regal Energy Inc., Cascadia International Resources Inc., International Technologies Corporation, Sabrich Capital Corporation, Yangarra Resources Ltd., Amalfi Capital Corporation and Lime Hill Capital Corporation.
The Company thanks Nicole Bacsalmasi for her past contributions as Corporate Secretary.
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 plans to complete the Acquisition. The Company cautions that there are no assurances or guarantees that the Acquisition of the Assets will be completed.
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