AltaCanada Energy Corp. – Montana wells being Tested
TSX-V SYMBOL: ANG
CALGARY, Oct. 29 – AltaCanada Energy Corp. reports that two
exploratory wells on the Fort Belknap Indian Reservation in northern Montana
were cased in October. Both wells are currently being production tested and
indicate gas flows from several Eagle zones. Specific test data is being kept
confidential. The evaluation of the Corporation’s 230,000 new gross acre block
on the Reservation is at a very preliminary stage and five additional wells
are planned before year end, including two deeper tests. AltaCanada’s year-end 2006 reserve estimate, by GLJ Petroleum Consultants, was mechanically updated to take into account nine months of 2007 production and a reduced pricing forecast equivalent to current gas prices. This update, which does not include any 2007 reserve additions from new drilling, indicates proven and probable reserves of 2.8 mmboe with a net present value of future cash flow, discounted at 10%, of $34.7 million. A revised net asset value for AltaCanada is $0.65 per share. Over 80% of these assets are located in Montana and would be unaffected by any royalty changes in Alberta.
A comparison of Montana and Alberta royalties can be found on our website www.Altacanada.com. Montana royalties are generally lower for most current pricing assumptions.
During August and September, management and directors exercised and hold an additional 1,079,593 shares under the AltaCanada Stock Option Plan.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
BOEs MAY BE MISLEADING, PARTICULARLY IF USED IN ISOLATION. A BOE CONVERSION RATIO OF 6 MCF : 1 BBL IS BASED UPON AN ENERGY EQUIVALENCY CONVERSION METHOD PRIMARILY APPLICABLE AT THE BURNER TIP AND DOES NOT REPRESENT A VALUE EQUIVALENCY AT THE WELLHEAD.
The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by AltaCanada Energy Corp. at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by AltaCanada Energy Corp. that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
For further information: Don Foulkes, President, Telephone: (403) 265-9091 (ext 248), Fax: (403) 265-9021, Email: info@altacanada.com
This article comes from NationTalk:
https://nationtalk.ca
The permalink for this story is:
https://nationtalk.ca/story/altacanada-energy-corp-montana-wells-being-tested
Comments are closed.