CALGARY, March 19 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS)
today announced that it has closed the sale of Mystique's Garrington assets to
a private oil and gas company for gross proceeds of 4.05 million dollars.
As announced in Mystique's press release dated 2007-03-01, proceeds of
the sale will be used to reduce Mystique's debt.
The sale of the Garrington assets will reduce Mystique's production by
approximately 85 barrels of oil equivalent per day ("boepd") effective
2007-01-01. As a result, Mystique's present production will be approximately
440 boepd. Based on the McDaniel & Associates Consultants Ltd. reserves report
dated 2006-12-31, the sale will reduce Mystique's proved plus probable ("P+P")
reserves by 257 thousand barrels of oil equivalent ("Mboe") to 2270 Mboe.
Mystique's P+P reserves at the end of 2005 were 905 Mboe. As a result of the
sale, Mystique's P+P reserves life index ("RLI") will increase from 12.6 years
to 13.5 years.
Rundle Energy Partners (formerly Kobayashi Partners Limited) were
advisors to Mystique on the sale of the Garrington assets.
As discussed in Mystique's press release dated 2007-01-31, Mystique can
now focus on increasing production over the year by undertaking a number of
low risk development projects. The first project would be the tie-in of a well
in the Wildcat Hills area that was drilled, completed and production tested in
late 2006. Certain work on the project, including clearing of the
right-of-way, is currently being completed. The flowline construction will be
completed after spring breakup. The tie-in of this well would add an estimated
125 barrels of oil equivalent ("boepd") to Mystique's current production, more
than offsetting the 85 boepd reduction in production that resulted from the
sale of Mystique's Garrington assets.
Based in Calgary, Mystique is involved in the exploration and
exploitation of petroleum reserves in western Canada.
Use of the term barrels of oil equivalent "boe" may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf: 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.
Except for statements of historical fact, all statements in this press
release, without limitation, regarding new projects and future plans and
objectives are forward-looking statements which involve risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from those
anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Vic Luhowy, President & Chief Executive
Officer, Mystique Energy, Inc., Tel: (403) 261-3634, Fax: (403) 265-3348,
email@example.com, Website - www.mystiqueenergy.ca