Admiral Bay Acquires 29 Wells and 39,000 Net Acres in Devon Project Area and Partners Interest in Pipeline
May 23 2008 - 3:56PM
Marketwired
CENTENNIAL, COLORADO ("Admiral Bay" or the "Company") is pleased
to announce that it has reached agreement to acquire approximately
39,000 net acres, 28 producing and SI wellbores and a SWD well in
the Ft. Scott Project that immediately offsets its Devon Project.
The Company also acquired the 50% interest in the Bourbon County
Pipeline ("BCPL") it does not currently own. The acquisition more
than doubles Admiral Bay's net acreage position in the Devon
Project area and gives it complete control of the gathering system.
This new acreage adds approximately 50 bcf of 3P reserves potential
to the Devon Project area. The Ft. Scott Project currently produces
50-80 mcfpd into the BCPL system. The Company is reviewing
alternatives for increased activity in this area to grow production
and reserves.
The Company will issue 3 million shares of its common stock to
the owners of the Ft. Scott Project and BCPL. In addition, the
sellers will have a 25% back in interest after 120% payout on a
project basis on the Ft. Scott Project acreage. One of the sellers,
Running Foxes Petroleum ("RFP"), owns a minority interest (less
than 10% percent in aggregate) in both BCPL the Ft. Scott Project,
and is controlled by Steven A. Tedesco, President, CEO and a
director of Admiral Bay. The other seller is an unaffiliated
private company. RFP and the private company acquired their
interest in the Ft. Scott Project and BCPL prior to Mr. Tedesco
joining Admiral Bay.
Closing of the transaction is contingent upon approval from the
TSX Venture Exchange for the issuance of the stock.
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging
unconventional gas production company focused on the development of
projects in the Cherokee Basin in southeast Kansas and the
Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX
Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned
that any such statements are not guarantees of future performance
and that actual developments or results may vary materially from
those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the
adequacy of this release.
Contacts: Admiral Bay Resources Inc. Steven Tedesco President
& C.E.O. (303) 350-1255 (303) 617-8956 (FAX) Email:
stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington
CFO (303) 350-1255 (303) 708-1861 (FAX) Email:
rcarington@admiralbay.com Website: www.admiralbay.com
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