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ANTERRA ENERGY ANNOUNCES JOINT VENTURE WITH REECE ENERGY
CALGARY, ALBERTA, August 12, 2008 – Anterra Energy Inc. (“Anterra” or the “Company”) is pleased to announce today that it has entered into a Joint Venture with Reece Energy Exploration Corp (TSX Venture Exchange - RXR) (“Reece”) with the signing of three separate agreements (“the Agreements”). Under the terms of the agreements Reece will invest $3.5 million, primarily in the drilling, completion, fracture stimulation and equipping of horizontal wells on Anterra’s lands at Frontier in south western Saskatchewan through development drilling in the Lower Shaunavon formation.
“We now have six Upper Shaunavon vertical oil producers on the Frontier property and these wells have given us good geologic control over the extent of both the Upper and Lower Shaunavon formations”, said Owen Pinnell, Chairman and CEO. “Vertical wells however are small producers and the true potential of the field lies in improving the production potential of both the Upper and Lower Shaunavon formation through horizontal development. Reece has had success with horizontal wells and multi-stage completions on several projects in Saskatchewan and brings this knowledge and experience to the Frontier project”. Pinnell continued, “A successful horizontal completion in the Lower Shaunavon is expected to deliver significant incremental reserves and will give us the confidence to embark on a more ambitious development program”.
The Agreements create an area of mutual interest (“AMI”) between Reece and Anterra covering twenty townships. Pursuant to the terms of the Agreements, once Reece has fulfilled its earning obligations, Reece will have earned fifty (50%) percent of Anterra’s interest in all available mineral rights, including existing production in the Upper Shaunavon, as well as the Lower Shaunavon rights on approximately 1,500 net acres. Reece and Anterra have agreed that Reece will operate the drilling and completion of all new wells drilled on the joint venture lands. The earning obligations of the Agreements are expected to commence immediately with completion anticipated by December 31st, 2008.
About Anterra Energy
Anterra Energy is an emerging energy company with a balanced portfolio of conventional and non conventional oil and gas exploration and development projects. Complementing this strong exploration and development focus, the Company owns and operates oil and gas production and associated fee-based midstream facilities in western Canada. Anterra is a public Canadian company listed on the TSX Venture Exchange under the symbols AE.A and AE.B. More information about Anterra is available on the internet at www.anterraenergy.com
For further information, please contact:
Owen C. Pinnell
Chairman and Chief Executive Officer
Anterra Energy Inc.
Telephone: (403) 215-2427
Facsimile: (403) 261-6601
E-mail: pinnello@anterraenergy.com
Bill Johnson
President and Chief Operating Officer
Anterra Energy Inc.
Tel: (403) 215-2384
Facsimilie: (403) 261-6601
E-mail: johnsonb@anterraenergy.com
Forward-Looking Information
This news release contains forward-looking information related to the Company’s planned drilling program, production and operating costs. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to, 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 estimates in relation to reserves, production and expenses; health, safety and environmental risks; and the uncertainty of dealing with government and obtaining regulatory approvals). Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the Company's securities should not place undue reliance on them.
In addition, the term BOE or BOEs may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion ratio of 6 Mcf per one (1) BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Reader Advisory
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
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