Business
Carmen Energy Inc. announces Letter of Intent to acquire Shorthorn Exploration Ltd.
CALGARY, Sept. 19, 2011 /CNW/ - Carmen Energy Inc. (TSXV: CEI) (" Carmen " or the " Corporati...
About this update from Cassiar Gold Corp
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Sept. 19, 2011 /CNW/ - Carmen Energy Inc. (TSXV: CEI) (\"Carmen\" or the \"Corporation\") is pleased to announce that the Corporation entered into a Letter of\n Intent on September 16, 2011 to acquire all the issued and outstanding\n shares of Shorthorn Exploration Ltd. (\"Shorthorn\"), a Calgary based\n private company engaged in the exploitation and development of gas and\n oil reserves in Alberta and Saskatchewan (the \"Acquisition\"). The Acquisition of Shorthorn is an arms-length transaction and does\n not result in a change of control of Carmen.\n\n\nShorthorn`s current production is approximately 23 barrels of oil per\n day and approximately 1,960 MCF of gas per day for a total of\n approximately 350 barrels of oil equivalent per day. In addition,\n Shorthorn has total acreage of 9,042 gross (8,710 net) of which 4,852\n gross (4,850 net) acres is developed and 4,190 gross (3,860 net) is\n undeveloped; excluding (80) eighty section farmin acreage with a major\n Canadian oil and gas Company.\n\n\nCarmen's President and Chief Executive Officer, Brian Doherty stated\n that, \"The Shorthorn acquisition is a great addition to Carmen's\n current holdings and provides a balanced approach to value creation for\n Carmen's shareholders.\n\n\nShorthorn's portfolio has a great mix of natural gas projects and\n moderate cost conventional oil potential with natural gas potential\n concentrated in an (80) eighty section farmin with a major Canadian oil\n and gas Company near Camrose, Alberta and the oil potential centred in\n the Viking Kinsella area.  The Shorthorn acquisition brings baseline\n cash flow and a prospect inventory to enhance Shareholder value with a\n relatively modest per well capital program.\n\n\nValue creation exists for Carmen's shareholders in the conventional oil\n potential of the Viking Kinsella assets. Shorthorn has secured a\n multi-section position based on current vertical well control which\n given success would support a multi-horizontal well development\n program.\"\n\n\nCompletion of the Acquisition is subject to several conditions,\n including, but not limited to, the negotiation and entering into of a\n mutually acceptable farmin agreement (as described below) and\n definitive acquisition agreement, Carmen raising the funds to close the\n Acquisition (the \"Financing\") on or b...