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Mystique Energy Executes Agreement to Sell Garrington Assets
Mystique Energy Executes Agreement to Sell Garrington Assets.
About this update from Abrasilver Resource Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, March 19 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS)\ntoday announced that it has closed the sale of Mystique's Garrington assets to\na private oil and gas company for gross proceeds of 4.05 million dollars.\n\n\nAs announced in Mystique's press release dated 2007-03-01, proceeds of\nthe sale will be used to reduce Mystique's debt.\n\n\nThe sale of the Garrington assets will reduce Mystique's production by\napproximately 85 barrels of oil equivalent per day ("boepd") effective\n2007-01-01. As a result, Mystique's present production will be approximately\n440 boepd. Based on the McDaniel & Associates Consultants Ltd. reserves report\ndated 2006-12-31, the sale will reduce Mystique's proved plus probable ("P+P")\nreserves by 257 thousand barrels of oil equivalent ("Mboe") to 2270 Mboe.\nMystique's P+P reserves at the end of 2005 were 905 Mboe. As a result of the\nsale, Mystique's P+P reserves life index ("RLI") will increase from 12.6 years\nto 13.5 years.\n\n\nRundle Energy Partners (formerly Kobayashi Partners Limited) were\nadvisors to Mystique on the sale of the Garrington assets.\n\n\nAs discussed in Mystique's press release dated 2007-01-31, Mystique can\nnow focus on increasing production over the year by undertaking a number of\nlow risk development projects. The first project would be the tie-in of a well\nin the Wildcat Hills area that was drilled, completed and production tested in\nlate 2006. Certain work on the project, including clearing of the\nright-of-way, is currently being completed. The flowline construction will be\ncompleted after spring breakup. The tie-in of this well would add an estimated\n125 barrels of oil equivalent ("boepd") to Mystique's current production, more\nthan offsetting the 85 boepd reduction in production that resulted from the\nsale of Mystique's Garrington assets.\n\n\nAbout Mystique\n\n\nBased in Calgary, Mystique is involved in the exploration and\nexploitation of petroleum reserves in western Canada.\n\n\nDisclaimers\n\n\nUse of the term barrels of oil equivalent "boe" may be misleading,\nparticularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is\nbased on an energy equivalency conversion method primarily applicable at the\nburner tip and does not represent a value eq...