CALGARY, March 19 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS) today announced that it has closed the sale of Mystique's Garrington assets to a private oil and gas company for gross proceeds of 4.05 million dollars.
As announced in Mystique's press release dated 2007-03-01, proceeds of the sale will be used to reduce Mystique's debt.
The sale of the Garrington assets will reduce Mystique's production by approximately 85 barrels of oil equivalent per day ("boepd") effective 2007-01-01. As a result, Mystique's present production will be approximately 440 boepd. Based on the McDaniel & Associates Consultants Ltd. reserves report dated 2006-12-31, the sale will reduce Mystique's proved plus probable ("P+P") reserves by 257 thousand barrels of oil equivalent ("Mboe") to 2270 Mboe. Mystique's P+P reserves at the end of 2005 were 905 Mboe. As a result of the sale, Mystique's P+P reserves life index ("RLI") will increase from 12.6 years to 13.5 years.
Rundle Energy Partners (formerly Kobayashi Partners Limited) were advisors to Mystique on the sale of the Garrington assets.
As discussed in Mystique's press release dated 2007-01-31, Mystique can now focus on increasing production over the year by undertaking a number of low risk development projects. The first project would be the tie-in of a well in the Wildcat Hills area that was drilled, completed and production tested in late 2006. Certain work on the project, including clearing of the right-of-way, is currently being completed. The flowline construction will be completed after spring breakup. The tie-in of this well would add an estimated 125 barrels of oil equivalent ("boepd") to Mystique's current production, more than offsetting the 85 boepd reduction in production that resulted from the sale of Mystique's Garrington assets.
About Mystique
Based in Calgary, Mystique is involved in the exploration and exploitation of petroleum reserves in western Canada.
Disclaimers
Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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