NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUE A VIOLATION OF UNITED STATES SECURITIES LAW
CALGARY, March 27, 2012 /CNW/ - First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX Venture: FMX) would like to announce the results of its exploration program in the Faust area of Alberta. FMX drilled three exploration wells to test five prospective targets defined by geology and seismic.
The three wells resulted in the discovery of a Bluesky oil reservoir with the potential to drill additional horizontal wells in the coming months. Although no economic quantities of oil were produced, the three vertical wells created an opportunity to delineate additional pools using 3-D seismic.
Given the current information available and using offsetting pools as an analogy, management believes there is the possibility of additional horizontal locations on FMX land. The typical Bluesky well in the Faust area will IP around 120bbls of oil per/day with 78mbbls of oil recoverable.
While the three Bluesky seismic anomalies were the main target, two deeper targets were also tested. The Pekisko tested bitumen at 7 API and the Keg River was wet. As a result of the drilling program FMX is able to keep the majority of its land for another 5 years.
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 in respect of a 3D seismic acquisition and follow up drilling program.
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by First Mountain, including the timing and costs of drilling, completion and seismic expenditures; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the First Mountain operates; the ability of the Company to obtain and retain qualified staff, equipment and services in a timely and cost efficient manner; and the general stability of the economic and political environment in which the Company operates. Readers are cautioned that the foregoing list of factors is not exhaustive. 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.
For further information:
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: (403) 453-2266