Management has positive outlook on its new corporate direction
CALGARY, Sept. 17 /CNW/ - (TSXV: PBT, FSE: P5W) Pemberton Energy Ltd. ("Pemberton") is pleased to announce the following corporate update. With regards to Pemberton's Panny well, it is management's current objective to have the well turned back on line. This well is fully equipped and is a turn key situation for Pemberton to achieve production. Management is working on the last of the monetary issues and road use agreements related to this well. Pemberton Panny 8-25 well was producing approximately 10 bbls/day from the Keg River formation when last on record in late 2008. Pemberton also holds mineral rights from surface to basement on a section of land (640 acres) contiguous to the Panny 8-25 well as well as mineral rights from surface to basement on an additional section of land (640 acres) to the north of this production. The section of land that is contiguous to the Panny 8-25 well has virtually identical geology to this well. Panny 8-25 well was drilled and put into production as a vertical well and it is an industry belief that a horizontal drill can increase production from 500%-1000%. Pemberton has an independent geoscientist finalizing potential horizontal drill targets in the Keg River formation on these lands. Keg River formation in this asset is believed to have a 20 m pay thickness with a medium to high oil saturation. When the evaluation is completed on these mineral rights Pemberton will proceed with an independent engineering report to obtain proven plus probable reserves. This report will be used to finance these endeavors.
Pemberton and Clinch Energy Ltd. commissioned Sproule Associates Limited to conduct an NI 51-101 compliant independent Evaluation of the P&NG Reserves of the Avon Hill 15-21-030-22W3M Horizontal Viking development prospect. After reviewing the proven plus probable reserves, management is anxious to proceed with this horizontal program. Pemberton will proceed first with the first horizontal drill, and will evaluate if the second horizontal target will be feasible due to the fact that it is only 80 acre spacing and there is a potential for competitive drainage. This report will be filed on SEDAR shortly in compliance with NI 51-101.
Pemberton will be holding its annual general and special meeting on October 27, 2010 at 10:00 am PST at its registered and records office of Suite 300, 576 Seymour Street, Vancouver, B.C. Pemberton's shareholders will be asked to consider, and if thought fit, approve a special resolution consolidating all of its commons shares on a one-new share for three old-share basis. The 3-for-one share consolidation would result in the number of issued and outstanding shares of the corporation being reduced from 106,339,303 common shares, without par value, to 35,446,434 common shares, without par value. Outstanding stock options and share purchase warrants will also be adjusted by the consolidation ratio, and the respective exercise prices of outstanding stock options and warrants will be adjusted accordingly. The company is also proposing to change its name from Pemberton Energy Ltd. to Brixton Energy Corp. in conjunction with the consolidation. The consolidation and the name change are subject to the acceptance by the shareholders and the TSX Venture Exchange.
With regards to the return of capital transaction involving the spin-out (the "Spin-out") of the Company's interest in certain of its assets to its wholly owned subsidiary Clinch Energy Ltd. ("Clinch") which was previously announced in the Company's February 16, 2010 news release. As stated in the February 16, 2010 news release, the Spin-out would result in each shareholder of the Company receiving one share of Clinch for every five shares of the Company held on the record date. If the consolidation of shares is approved, the Spin-out would result in each shareholder receiving one (1) share of Clinch for every one and two-third (1 2/3) shares of the Company.
Management of the Company believes that further equity financing is required in order for the Company to finance its current working capital requirements and for future business purposes. It is management's opinion that the Company existing issued and outstanding share capital is not conducive to completing such additional equity financing, and that the consolidation is required in order to attract new equity investment to the Company.
On Behalf of Pemberton Energy Ltd.
"Richard Saxon"
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Richard Saxon, President
We seek Safe Harbor
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: For further information:
PEMBERTON ENERGY LTD., 328, 1500 14th Street SW, Calgary, AB, T3C 1C9, PHONE: 403-269-8424, FAX: 403-269-8477 |
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