Base Oil and Gas announces completion of strategic asset acquisition
September 07 2011 - 10:14PM
PR Newswire (Canada)
CALGARY, Sept. 7, 2011 /CNW/ -- CALGARY, Sept. 7, 2011 /CNW/ - Base
Oil & Gas Ltd. (TSXV: BOG) ("Base" or the "Company") is
pleased to announce that it has completed its previously announced
acquisition of oil and gas assets in East central Alberta for total
consideration of $7.8 million in cash (subject to customary closing
adjustments) with an effective date of July 1, 2011. With
this acquisition, production from the oil-weighted assets is
expected to average more than 150 boe/d in the fourth quarter of
2011 and the Company's undeveloped land position in the area grows
to approximately 30,000 net acres. Current production is
approximately 201 boe/d. About Base Oil & Gas Ltd. Base is a
Calgary-based emerging junior oil and gas company currently focused
on high netback oil production in southern and east central
Alberta. BOEs Boes 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. FORWARD-LOOKING STATEMENTS Certain information included
in this press release constitutes forward-looking information under
applicable securities legislation. Such forward-looking information
is provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Readers are cautioned that reliance on such information may not be
appropriate for other purposes, such as making investment
decisions. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking information in this press release may include, but
is not limited to, information with respect to: expected timing to
bring on and the quantity of new production; receipt of all
necessary approvals for the Assets acquisition and the private
placement financing; operational decisions and the timing thereof;
development and exploration plans, the likelihood of success and
the timing thereof; the sufficiency of and access to pipeline
infrastructure; and future royalty treatment of any future
production. Forward-looking information is based on a number of
factors and assumptions which have been used to develop such
information but which may prove to be incorrect. Although the
Company believes that the expectations reflected in such
forward-looking information is reasonable, undue reliance should
not be placed on forward-looking information because the Company
can give no assurance that such expectations will prove to be
correct. In addition to other factors and assumptions which may be
identified in this press release, assumptions have been made
regarding and are implicit in, among other things: field production
rates and decline rates; the ability of the Company to secure
adequate product transportation; the impact of increasing
competition in or near the Company's plays; the timely receipt of
any required regulatory approvals; the ability of the Company to
obtain qualified staff, equipment and services in a timely and cost
efficient manner to develop its business; the Company's ability to
operate the properties in a safe, efficient and effective manner;
the ability of the Company to obtain financing on acceptable terms;
the ability to replace and expand oil and natural gas reserves
through acquisition, development and exploration; the timing and
costs of pipeline, storage and facility construction and expansion;
future oil and natural gas prices; currency, exchange and interest
rates; the regulatory framework regarding royalties, taxes and
environmental matters; and the ability of the Company to
successfully market its oil and natural gas products. Readers are
cautioned that the foregoing list is not exhaustive of all factors
and assumptions which have been used. Statements relating to
"reserves" are by their nature forward-looking statements, as they
involve the implied assessment, based on certain estimates and
assumptions that the reserves described can be profitably produced
in the future. The recovery and reserve estimates provided herein
are estimates only and there is no guarantee that the estimated
reserves will be recovered. As a consequence, actual results may
differ materially from those anticipated in the forward looking
statements Forward-looking information is based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking information. The material risk factors
affecting the Company and its business are contained in the
Company's annual information form for the year ended December 31,
2010 dated July 29, 2011 and Management's Discussion and Analysis
which are available under the Company's issuer profile on SEDAR at
www.sedar.com. The forward-looking information contained in this
press release is made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, unless required by
applicable securities laws. The forward looking information
contained in this press release is expressly qualified by this
cautionary statement. Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/September2011/07/c9400.html
p /p p align="left" Base Oil & Gas Ltd. /p table valign="top"
border="0" tr td Richard Thompson /td td
Roy Evans, C.A. /td /tr tr td President &
CEO /td td Vice President, Finance
& CFO /td /tr tr td (403)
384-0000 /td td (403) 384-0000 /td
/tr tr td a
href="mailto:richardt@baseoilandgas.ca"richardt@baseoilandgas.ca/a
/td td a href="mailto:roye@baseoilandgas.ca"roye@baseoilandgas.ca/a
/td /tr tr td /td td /td /tr tr td or visit the
Company's website at a
href="http://www.baseoilandgas.ca"www.baseoilandgas.ca/a. /td td
/td /tr /table p /p
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