CALGARY, April 4 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV: URX) today announced that it has entered into a farm-in agreement with Avenger Petroleum Inc. whereby Unitech will participate in the drilling of a well in northeast British Columbia at c-B67-K/94-I-14. The target is the Keg River formation in the Kotcho field, where seismic analysis covering the prospect indicates a possible Pine Point (Keg River) lower level reef build up equivalent in age to the nearby Yoyo and Sierra reefs (which have produced greater than 1 TCF each). Wells drilled in the giant Yoyo (8 km south) and Sierra (21 km south) gas fields have produced between 40 to 60 BCF per well from fully developed reefs of the Devonian Pine Point formation. It should be noted that Unitech's prospect is interpreted to be a lower reef build up as opposed to the large pools mentioned above, with anticipated recoveries more similar to the smaller pools found in the Yoyo and Sierra gas fields.
Steve Price, President of Unitech Energy Resources Inc., commented, "We have high expectations for success here which would propel Unitech to the next level."
Unitech has agreed to incur up to $482,580 in capital expenditures for a 15% working interest, with a number of additional well locations pending a successful outcome of the earning well. The working interest would decrease in the event that costs are greater than initially expected. The expenditures related to this well will satisfy all of Unitech's flow-through obligations for its flow-through funds raised in 2006. The well is currently being drilled and Keg River contact is expected by April 30, 2007. Subject to the ongoing terms of the farm-in agreement, rights to additional lands along the same trend have also been acquired.
About Unitech Energy Resources Inc.
Unitech uses its proprietary image analysis and pattern recognition system, called Leadscan, for a 'first look advantage' that drives Unitech's exploration strategy. Please visit Unitech's website at www.leadscan.ca. Shares of Unitech are listed for trading on the TSX Venture Exchange under the symbol URX.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the oil and gas industry, regulatory and economic risks, and risks associated with Unitech's ability to implement its business plan. Unitech undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
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