CALGARY, Aug. 30 /CNW/ - Poplar Point Energy Inc. (the "Corporation")
wishes to provide an operational update.
Current Production: Total net production from the Corporation's existing
Edmonton Sands program is approximately 920 mcf/day (153 BOE/day). This total
includes production from the non-operated 1-28-40-4 W5M well, which was
brought on stream on August 16, 2007. The Corporation chose to participate for
its 20% working interest with Hunt Oil Company of Canada ("Hunt") who operated
the 1-28-40-4 W5M well. The well was tied into Hunt's facilities in the area.
Drilling Program: The Corporation intends to drill a minimum of two, and
up to five, additional wells on land contiguous to the current producing
Edmonton Sands core area. The Corporation will be the operator and it is
anticipated that drilling will be completed by the end of September. The
program will be funded from proceeds from the Corporation's recent
flow-through financing and from a loan (please see below). The Corporation has
various working interests in the proposed wells, ranging from 100% to 35%.
Where the working interest is less than 100%, the Corporation's partner will
be Hunt. All wells are proposed to be tied into the existing Hunt facilities
which are operating below their full volume capacity. It is expected that the
wells will be on production in October when drilling, completions, tie-in and
facility operations will be completed.
"This is an exciting time and opportunity for the Corporation. The recent
financings are paramount to allowing the Corporation to showcase once again
the unique balance of its geological, land and operational talents. We have
worked hard to create a culture like no other, with a team like no other, in
an industry like no other in the world. We have always done things differently
than everyone else and we believe that this philosophy will continue to lead
us into a successful future," said Brad Nichol, President of the Corporation.
In addition, the Corporation would like to announce that it has borrowed
an aggregate of $1,335,935.47 from two (2) arms length parties. The details of
the loans are as follows:
- As of August 10, 2007, the Corporation borrowed an aggregate of
$1,000,000 (the "Digital Loan") from Digital Device Inc. ("Digital").
The Digital Loan, which bears an interest rate of 8% per annum, is
payable on or before September 15, 2007. The proceeds of the Digital
Loan was used for working capital. The Corporation has the option to
convert the Digital Loan into 4,000,000 common shares in the capital
of the capital of the Corporation at a deemed price of $0.25 per
- As of August 1, 2007, it has borrowed $335,935.47 (the "Loan") from
CanGrowth Capital Corp. ("CanGrowth"), an arm's length party. The
Loan, which bears an interest rate of 8% per annum, is payable on or
before September 30, 2007. The Loan is secured by a fixed charge over
a section of land in which the Corporation owns a 20% working
interest and is the first installment of a facility of up to
$700,000. The proceeds of the Loan were used for the drilling program
as described above and for working capital.
Forward Looking Statements
This update contains "forward looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Generally, these forward looking
statements can be identified by the use of forward looking terminology such as
"plans", "anticipated", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". The Corporation is
subject to significant risks and uncertainties which may cause the actual
results, performance or achievements to be materially different from any
future results, performance, or achievements expressed or implied by the
forward looking statements contained in this release. The Corporation cannot
assure investors that actual results will be consistent with these forward
looking statements and Poplar Point assumes no obligation to update or revise
the forward looking statements contained in this release to reflect actual
events or new circumstances.
For further information:
For further information: Brad Nichol, President, (403) 532-2411