Business
Alberta Oil Sands Update
Alberta Oil Sands Update.
About this update from Sienna Resources Inc
[{"type":"text","content":"\n\n\n\nHAO: TSX Venture Exchange\n\n\nHBNRF: Pink Sheets\n\n\nHRJ: Frankfurt Stock Exchange\n\n\nVANCOUVER, May 30 /CNW/ - Habanero Resources Inc. ("Habanero") wishes to\nreport that Andora Energy Corporation ("Andora") (private Alberta oil sands\ncompany of which Habanero owns 700,000 shares) has executed a letter of intent\nwith Signet Energy Inc. (Signet") setting forth the principal terms and\nconditions upon which Andora and Signet have agreed to enter into a business\ncombination, according to a Pan Orient Energy Corp. ("Pan Orient") news\nrelease dated May 25, 2007.\n\n\nThe combination will be effected by way of a plan of arrangement under\nthe Business Corporations Act (Alberta) whereby the security holders of Signet\nwill receive, in total, 17.5 million common shares of Andora (subject to\nadjustment) valued at $50-million. Signet's assets currently include the\npotential to contribute up to approximately $14-million cash to the combined\ncompany and a 40% interest in six sections of oil sand leases in the Sawn Lake\nheavy oil project area in Alberta in addition to the rights to a 40% working\ninterest in an additional 12 sections of oil sands leases.\n\n\nUpon completion of the transaction contemplated herein, the combined\ncompany will be focused on development of the South and Central Sawn Lake\nheavy oil pool area, holding the majority of the known probable and possible\nreserves based on a recently completed N1-51-101-compliant reserve report\nundertaken by independent reserve engineers Degolyer and MacNaughten, as news\nreleased by Pan Orient in Stockwatch on February 6, 2007. According to this\nreport, the probable Sawn Lake recoverable reserves are 97.4 million barrels\nof oil after government royalty, an increase of 276% from 25.9 million barrels\nin prior year. Additionally, probable and possible recoverable reserves of\n179 million barrels of oil after government royalty, an increase of 85% from\n97 million barrels in prior year representing a net present value (discounted\n10% before tax - forecast prices) of $830 million attributed to Sawn Lake\nprobable + possible reserves.\n\n\nAndora currently (prior to Signet deal closing) holds an unencumbered (no\nGORR) 10% working interest in 69.5 sections of Sawn Lake oil sand leases\n("North Block") plus an additional ...