Triple 8 Energy Ltd. Announces Execution of Definitive Purchase and Sale Agreement for the Previously Announced Property Acquisition
CALGARY, ALBERTA--(Marketwire - June 30, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
Triple 8 Energy Ltd. ("Triple 8" or the "Company") (TSX VENTURE:TEE) is pleased to announce that it has signed a definitive purchase and sale agreement (the "Agreement") in connection with the previously announced acquisition of certain high quality assets in northeast British Columbia, in the vicinity of the prolific Boundary Lake area, for total consideration of $4,300,000, plus applicable taxes and fees (the "Acquisition"). The Acquisition is expected to be completed on or about July 28, 2010, with an effective date of May 1, 2010.
The Acquisition will be financed from proceeds of a concurrent equity financing for gross proceeds of $8.5 million, with an option granted to the investor group, in connection with the previously announced recapitalization and change of management of Triple 8, to increase the financing to $10.0 million. A non-refundable deposit of $430,000 has paid by Triple 8 to the vendor in accordance with the terms of the Agreement.
The Acquisition is comprised of 9 (4.45 net) producing wells, 9 (4.46 net) suspended wells, and associated production and facilities. In April, 2010, net production from the assets to be acquired pursuant to the Acquisition was approximately 72 boe/d, comprised of 41 barrels per day of light oil and natural gas liquids and 186 mcf per day of natural gas. This asset will be operated substantially by the Company, with working interests ranging from 50% to 100%.
In addition, the Acquisition includes recent 3D seismic data covering an area of approximately 16 sections, 10,000 net undeveloped acres, and a gas compression and dehydration facility with a capacity of 10 mmcf per day, with current utilization of less than 1 mmcf per day.
The Company anticipates to be actively working this fall and winter to optimize production with additional drilling and work overs on existing producing wells. At this time, no independent engineering has been completed for the assets or prospective acreage to be acquired pursuant to the Acquisition.
Forward Looking and Cautionary Statements
Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.
This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
Triple 8 Energy Ltd. ("Triple 8" or the "Company") (TSX VENTURE:TEE) is pleased to announce that it has signed a definitive purchase and sale agreement (the "Agreement") in connection with the previously announced acquisition of certain high quality assets in northeast British Columbia, in the vicinity of the prolific Boundary Lake area, for total consideration of $4,300,000, plus applicable taxes and fees (the "Acquisition"). The Acquisition is expected to be completed on or about July 28, 2010, with an effective date of May 1, 2010.
The Acquisition will be financed from proceeds of a concurrent equity financing for gross proceeds of $8.5 million, with an option granted to the investor group, in connection with the previously announced recapitalization and change of management of Triple 8, to increase the financing to $10.0 million. A non-refundable deposit of $430,000 has paid by Triple 8 to the vendor in accordance with the terms of the Agreement.
The Acquisition is comprised of 9 (4.45 net) producing wells, 9 (4.46 net) suspended wells, and associated production and facilities. In April, 2010, net production from the assets to be acquired pursuant to the Acquisition was approximately 72 boe/d, comprised of 41 barrels per day of light oil and natural gas liquids and 186 mcf per day of natural gas. This asset will be operated substantially by the Company, with working interests ranging from 50% to 100%.
In addition, the Acquisition includes recent 3D seismic data covering an area of approximately 16 sections, 10,000 net undeveloped acres, and a gas compression and dehydration facility with a capacity of 10 mmcf per day, with current utilization of less than 1 mmcf per day.
The Company anticipates to be actively working this fall and winter to optimize production with additional drilling and work overs on existing producing wells. At this time, no independent engineering has been completed for the assets or prospective acreage to be acquired pursuant to the Acquisition.
Forward Looking and Cautionary Statements
Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.
This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For more information, please contact
Hyperion Exploration Ltd.
Trevor Spagrud
(403) 470-5499
tspagrud@hyperionexploration.com
or
Triple 8 Energy Ltd.
Dickson P. Chow
(403) 269-3091
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