Carmen Energy Inc. announces corporate update and grant of stock options
February 02 2012 - 5:30AM
PR Newswire (Canada)
CALGARY, Feb. 2, 2012 /CNW/ - Carmen Energy Inc. ("Carmen" or the
"Corporation") is pleased to announce that it has spud a well in
its Hamburg area of Alberta. Management of the Corporation expects
drilling to take up to thirty-five days from the date of spud to
reach contract depth and to review well logs. Additionally, Petrus
Resources Ltd. ("Petrus"), a privately owned energy company based
in Calgary, Alberta is participating in the well and has the right
to earn a 45% working interest in two sections of land in the
Hamburg area of Alberta. Petrus is required to contribute 45% of
the costs to drill to the contract depth, abandon, cap or complete,
equip and tie-in the first option well. The working interest
is subject to the same non-convertible overriding royalty
calculated on 100% of production of 1/15 (min. 5/10% and max
15/20%) on crude and 15/20% on all other petroleum substances that
Carmen is subject to and payable to the original party whose
property Carmen's farmin is with (as previously disclosed in a
press release of the Corporation dated December 9, 2011) and
subject to Crown Royalties. The Corporation's Sylvan Lake
102/14-7-38-3w5 Leduc well has been on production since November 7,
2011, without artificial lift. The first thirty days of production
averaged 35 barrels of oil equivalent ("BOE/d") per day consisting
of 5 barrels of oil per day, 12 barrels of natural gas liquids per
day and 108 Mcf/day net to the Corporation. Plans are being
initiated to put the well on artificial lift. Carmen has a 15%
working interest in the well. Carmen will provide a production
update upon receipt of stabilized rates subsequent to
implementation of artificial lift. The Sylvan Lake 12-22-38-4w5
Leduc well has been completed and tested at noncommercial rates and
is standing awaiting further evaluation. Production at the Jumpbush
area of Alberta well which Carmen owns a 37.5% working interest has
maintained stable production rates of 8 BOE/d (net) comprised of 5
barrels of oil per day and 18 Mcf/day. The Corporation is also
pleased to announce the implementation of an Executive Committee
comprised of three members of the Board of Directors being Randy
Harrison, Archie Nesbitt and Gerald Facciani. The role of the
Executive Committee will be to facilitate financings, negotiate and
review corporate contracts. In conjunction with the implementation
of the Executive Committee, Brian Doherty will relinquish the title
of Chief Executive Officer in order to focus on his duties as
President and Director of the Corporation. Carmen also announces
that Grant MacKenzie, a partner at Burnet, Duckworth and Palmer LLP
has assumed the position of Corporate Secretary and General Counsel
for the Corporation effective immediately. Furthermore, the
Corporation announces that a total of 950,000 stock options have
been granted to the directors, and officers of the Corporation at
an exercise price of $0.19 per share for a period of five years
from the date of grant. The options have been granted in accordance
with the Corporation's stock option plan. About Carmen Energy Inc.:
Carmen is based in Calgary, Alberta and a publicly traded oil and
gas exploration and production company. The focus is on exploration
and development of Western Canadian Sedimentary Basin based oil and
gas properties. The current projects are the Jumpbush properties in
south eastern Alberta, the Ferrybank properties in central Alberta,
the Sylvan Lake area properties in Southern Alberta and the Hamburg
properties in northern western Alberta. Barrels of oil equivalent
(BOE) may be misleading, particularly if used in isolation. The BOE
conversion ratio used in this report is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. All
BOE conversions in this report are derived by converting gas to oil
in the ratio of six thousand cubic feet of natural gas to one
barrel of oil equivalent (6 Mcf = 1 BOE). It is important to note
that the 1:6 ratio is based on an energy equivalency and the value
ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6:1; utilizing a conversion on a 6:1 may be misleading as an
indication of value. FORWARD LOOKING INFORMATION Certain
information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important
risks, uncertainties and assumptions. This forward-looking
information includes, among other things, the actual time to reach
contract depth of the Hamburg area well and the review of logs
within thirty-five days from the date of spud, plans to place the
Sylvan Lake well on artificial lift and information with respect to
the Corporation's beliefs, plans, expectations, anticipations,
estimates and intentions and the activities of the
Corporation. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and
expressions are used to identify forward-looking information. . The
forward-looking information in this news release describes the
Corporation's expectations as of the date of this news release. The
results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or
events. Material factors which could cause actual results or
events to differ materially from such forward-looking information
include, among others, the risks associated with the oil and gas
industry in general, risks arising from general economic conditions
and adverse industry events, risks arising from operations
generally, reliance on contractual rights such as licences and
leases in the conduct of its business, the uncertainty of reserve
and resource estimates; the uncertainty of estimates and
projections relating to reserves, resources, production, costs and
expenses; reliance on third parties, reliance on key personnel,
possible failure of the business model or business plan or the
inability to implement the business model or business plan as
planned, competition, environmental matters, and insurance or lack
thereof; failure to realize the anticipated benefits of
acquisitions including the Acquisition; ability to access
sufficient capital from internal and external sources; changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations. The Corporation cautions that the
foregoing list of material factors is not exhaustive. When
relying on the Corporation's forward-looking information to make
decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and potential
events. The Corporation has assumed a certain progression,
which may not be realized. It has also assumed that the
material factors referred to in the previous paragraph will not
cause such forward-looking information to differ materially from
actual results or events. However, the list of these factors
is not exhaustive and is subject to change and there can be no
assurance that such assumptions will reflect the actual outcome of
such items or factors. THE FORWARD-LOOKING INFORMATION CONTAINED IN
THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS
OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO
CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE
IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON
THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION
MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT
ANY PARTICULAR TIME. 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 press release. Carmen Energy Inc
CONTACT: Brian DohertyPresident(403) 537-5590
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