CALGARY, April 10 /CNW/ - Pine Cliff Energy Ltd. ("Pine Cliff" or "the
Company") (www.pinecliffenergy.com) (TSX Venture: PNE) is pleased to announce
that it has completed two major farm in arrangements in Argentina. The farm
ins will result in Pine Cliff earning interests in a total of
912,810 gross acres (542,410 net acres) of exploration and exploitation lands.
Canadsn Ramirez Property
CanAmericas Energy Ltd. ("CanAmericas"), a 93.3 percent owned subsidiary
of Pine Cliff, has earned a 49% interest and is the largest interest owner in
47,940 gross acres (23,490 net acres) of an exploitation concession situated
in the western part of the San Jorge Basin, Argentina, by committing to fund
100% of exploration costs totaling $US 5,500,000 over the next two years. The
commitment includes conducting a 3D seismic program and drilling three wells
in the first year at an estimated cost of $US 4,630,000. In the second year of
the commitment, CanAmericas is committed to spend the remainder of the
$US 5,500,000 on drilling.
The acreage is bordered by several producing oil fields. Over 40 separate
prospective reservoirs belonging to the Upper-Mid Cretaceous-aged Bajo Barreal
and Castillo Formations, exceeding 13 feet in thickness, are known to exist
within the farm in area at depths between 1950 - 5000 feet. Additionally,
Neocomian aged source rocks within the farm in area have been proven to be oil
generating and over pressured.
CanAmericas is currently conducting a 75 square mile 3D seismic survey
which is to be completed and assessed by the end of Q2, 2007, the first to be
recorded over the producing and earned areas that will permit detailed
stratigraphic and structural confirmation of multiple leads that were
initially developed from existing 2D coverage. An agreement was made with an
adjacent operator to trade seismic data providing the Company with data over a
total of 93 square miles. This will allow CanAmericas to tie in its seismic
data to seismic conducted over an existing producing oil field. A drilling rig
has been contracted and drilling of three prospects is scheduled to begin by
San Jorge Basin Property
CanAmericas has negotiated exclusive rights to progressively earn a 60%
interest in 864,870 gross acres (518,920 net acres) of an exploration permit
situated in the north-central San Jorge Basin, Argentina. CanAmericas has the
right to become Operator of the permit and will likely decide to do so after
it has completed its due diligence pertaining to the ability to transfer the
property and to review specific tax matters.
CanAmericas is committed to fund 100% of the costs to conduct an
aero-magnetic and aero-gravity survey over the entire permit area, acquire
39 square miles of 3D seismic, and drill two exploration wells to earn a 30%
participating interest in the entire permit. The surveys are to be completed
within one year of the effective date of the agreement and the wells are to be
drilled within two years of the effective date, but it is anticipated that
drilling will commence within a shorter period.
CanAmericas will earn an additional 30% in the entire permit by drilling
two additional wells within three years of the effective date of the
agreement. CanAmericas will receive 100% of cash flow from this property until
it has recovered 100% of its costs for the two work programs. The estimated
cost for both work programs is $US 4,620,000. After completion of the two work
programs, costs will be shared on a 60% CanAmericas/40% Farmor basis.
Principal reservoir objectives are multiple sands of the Upper-Mid
Cretaceous Bajo Barreal and Castillo Formations which are known to exist
throughout the permit at depths ranging between 1000 - 5000 feet. An oil field
lies adjacent to the southern border of this permit, and existing seismic data
and well control suggests the productive trend may extend into the southern
portion of this permit. Additionally, numerous oil and gas shows encountered
by older wells drilled throughout the permit during the 1960's - 1980's prove
that the permit contains an active hydrocarbon system.
CanAmericas will initially acquire the regional aero-gravity and
aero-magnetic surveys over the entire permit and with this information will
determine where to best conduct a 3D seismic survey. This is expected to
assist in better understanding and to confirm the existence of several
prospects that were identified from limited existing 2D seismic coverage.
The Company is very excited about the geological potential and the size
of this concession and permit. A land position of this magnitude is extremely
difficult to obtain and provides the potential for a large number of drill
locations in many different geological prospects. Additional funding will be
required to complete commitments for these farm ins and Pine Cliff is
presently evaluating its options with regard to this funding and will proceed
with it in Q2, 2007. CanAmericas is presently negotiating to obtain additional
exploration, exploitation, and producing properties.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: relating to the Company may be found on
SEDAR.COM as well as on the Company's website at www.pinecliffenergy.com or by
contacting George F. Fink, President and CEO, Randy M. Jarock, COO, or Garth
E. Schultz, Vice President - Finance and CFO at (403) 269-2289 or by fax at