Jun. 9, 2009 (Filing Services Canada) -- Champlain Resources Inc. (CPL.H - TSX Venture), ("Champlain" or the "Corporation"), listed on the NEX board of the TSX Venture Exchange under the trading symbol "CPL.H", announces a private placement offering of up to 9,000,000 units at a price of $0.05 per unit; each unit consists of one (1) common share and one (1) common share purchase warrant exercisable for one year at a price of $.10 cents. The private placement is for up to $450,000 gross proceeds and is subject to applicable regulatory approvals. There is no minimum for the private placement. The private placement offering will be made on a non-brokered basis; however the Corporation may pay a commission of up to 10% in cash and warrant coverage to finders or agents who are at arm's length to Champlain.
Champlain intends to use the proceeds of this private placement to acquire land in Pennsylvania, Montana and Wyoming prospective for both shale gas and Bakken light oil and for general working capital.
The Bakken formation is part of the Williston Basin covering approximately 520,000 square kilometers in parts of Montana, North Dakota and Saskatchewan. An April 2008 United States Geological Survey (USGS) report estimated the amount of technically recoverable oil in the Bakken formation to be 3.0 to 4.3 billion barrels (680,000,000 m3); with a mean of 3.65 billion barrels. The most prolific of these fields in Montana is thought to be the Elm Coulee Oil Field in Richland County.
At the Elm Coulee Field in Montana, the Bakken is approximately 45 feet (15 m) thick and lies at depths of 8,500 to 10,500 feet (2,600 - 3,200 m), recent horizontal wells have penetrated depths of 3,000 to 5,000 feet (900 - 1,500 m) of the Bakken formation. Champlain has the opportunity to acquire over 2,500 acres in Richland County and a further 22,000 acres in Dawson, Petroleum, Stillwater and Powder River Counties of Montana. Management believes these leases are prospective for both light oil and natural gas.
Champlain must complete the acquisition of the Richland County Lease by July 1st with the proceeds of the proposed private placement. This financing is anticipated to be the first of four private placement financings planned by the Corporation that will be necessary to complete the lease acquisitions and a seismic survey. In addition, Champlain intends to commission a NI 51-101 compliant reservoir engineering report from Netherland, Sewell & Associates, Inc. of Dallas, Texas on the leases acquired.
In Wyoming, Champlain hopes to acquire leases in Sublette, Fremont, Natrona, Sweet Water and Carbon Counties. Champlain anticipates closing this acquisition in the third quarter of 2009 subject to future financing. The largest of the available fields is the Jonah natural gas field currently being developed by EnCana and BP. A United States Geological Survey (USGS) estimate of The Jonah natural gas field is estimated to contain 10.5 trillion cubic feet of natural gas.
``The acquisition of leases in Montana and Wyoming prospective for both light oil and natural gas will help diversify Champlain from its single focus on natural gas.`` reported Troy Mochoruk, Champlain's Chairman and CEO. Mr. Mochoruk went on to say that ``with the debt and equity markets beginning to show signs of improvement now is an opportune time for Champlain to take advantage of the market conditions for financing, lower land lease costs and drilling efficiencies due to idle equipment and lower rigs counts.``
In Pennsylvania, the Corporation's Marcellus Shale leasing program has identified over 30,000 acres prospective for Marcellus shale. ``We have focused on leasing tier 1 acreage for Marcellus in Westmoreland, Fayette, Somerset, Luzerne, Wyoming, Tioga and Lycoming Counties of Pennsylvania.`` says Mr. Mochoruk. ``With the recent horizontal drilling results reported by Range Resources of 7.9 and 10.7 Mmcfe per day of natural gas for two wells reported in an April 2009 press release and plans to drill 60 horizontal wells in 2009, Champlain will continue to lease land. We were hit hard in the third quarter of 2008 with the global financial crisis and steep decline of natural gas commodity prices and the freeze-up of debt and equity markets, but maintain many of our advantages as a small, nimble company.`` Mr. Mochoruk said.
``Natural gas will continue to be a cheaper, cleaner domestic source of energy for the future of energy independence of North America. `` Mr. Mochoruk went on to say. ``President Barack Obama has made it a priority of his White House Administration to obtain energy independence. ``
Champlain anticipates completing these Marcellus leases in the third and fourth quarters of 2009 subject to future financings.
For further information contact:
Mr. Troy Mochoruk
Chairman and CEO:
Tel: (403) 618-8989
E-mail: [email protected]
www.champlainresources.com
This press release contains certain forward-looking statements. In particular, statements relating to the acquisition of leases in Pennsylvania, Montana and Wyoming, the availability of financing necessary to complete such acquisitions, the prospects for discoveries under such leases, completions of the Marcellus leases and market conditions for the completion of the proposed private placement are forward looking. These statements are based on Champlain's current expectations and assumptions that could prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. In making forward looking statements, Champlain has assumed that discussions relating to the lease acquisitions will continue favorably for the Corporation; that the market conditions for the private placement will remain favorable; that sufficient amounts under the private placement and the proposed subsequent private placements will be raised to fund the acquisitions; and that lands explored and developed by other oil and gas companies surrounding the areas, and estimates provided by the US Geological Survey reflect the potential for lands to be leased currently under discussion with the Corporation. Actual results may differ materially as a result of risks, uncertainties and other factors, such as: changes in the general economic, regulatory, industry, market and business conditions, fluctuations in commodity prices and currency exchange rates; the successful and timely implementation of projects and lease discussions; imprecision of reserve estimates; environmental risks; and competition from other industry participants. Also affecting the accuracy of any forward-looking statement is the availability of capital required to implement future operational plans, uncertainties resulting from potential delays or changes in plans, among others.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Source: Champlain Resources Inc. (CPL.H - TSX-V)
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