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Upper Lake Oil and Gas Ltd. announces 2008 capital budget and $3.2 million acquisition of oil and gas assets
CALGARY, Jan. 28 /CNW/ - Upper Lake Oil and Gas Ltd. (TSX:UP) ("Upper Lake" or the "Company") ann...
About this update from Mx Gold Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 28 /CNW/ - Upper Lake Oil and Gas Ltd. (TSX:UP) ("Upper\nLake" or the "Company") announced today that its Board of Directors has\nfinalized the Company's budget for 2008. In addition, Upper Lake announced\nthat it has exercised an option to acquire certain oil and gas assets in\ncentral Alberta and northeast British Columbia from Crocotta Energy Inc. for\n$3.2 million.\n\n\nCertain information included in this News Release constitutes\nforward-looking information, including information concerning Upper Lake's\nplans to finance the acquisition of assets from Crocotta Energy Inc., the\ntiming of closing of that acquisition and anticipated average production for\n2008. Readers should review the cautionary statement that appears at the end\nof this News Release.\n\n\nOperational update\n\n\nUpper Lake estimates that its year-end exit production for 2007, based on\nfield estimates, was approximately 820 barrels of oil equivalent per day\n(70% natural gas), exceeding the Company's year-end exit production guidance\nof 700 to 800 boe/d. In the fourth quarter, Upper Lake drilled two (1.48 net)\nwells, with a success rate of 100%, including a new pool discovery. The\nCompany's current production, based on available field reports, is estimated\nat 1,000 boe/d, which includes flush production from the previously announced\n15-04-43-28 w4 oil well in Ferrybank, Alberta and a gas well drilled in a\nnewly discovered pool in the Ferrybank area.\n\n\nAsset acquisition\n\n\nUpper Lake also advises that it has exercised rights available to it\nunder an agreement with Crocotta Energy Inc. to acquire certain oil and gas\nassets in central Alberta and northeast British Columbia for $3.2 million in\ncash, before closing adjustments. The assets include one (16.67% net)\nproducing well at Tupper in northeast British Columbia, five (3.2 net) cased\nand tested wells awaiting tie-in in Alberta, and varying working interests in\n16,000 acres of land in Alberta and British Columbia, including a one-third\nworking interest in the Tupper area. The Tupper lands are in the vicinity of a\ndeveloping Montney resource play. Upper Lake expects to finance the\nacquisition through its existing credit facilities. Closing of the acquisition\nis expected to occur by the end of February 2008, subject to the satisfaction\nof certa...