/NOT FOR DISTRIBUTION TO
The Company intends to complete an equity financing to fund its capital contribution obligations under the PA and to provide for working capital. The terms of the proposed financing will be announced shortly in consultation with the Company's capital markets advisors. Completion of the proposed transaction under the PA is subject to approval of the
"This agreement represents our first project in
Opportunity Highlights
- Located in one of the world's major mega basins
- Asset surrounded by major upstream and midstream infrastructure
- Up to
$28 Million of NPV (10) potential - Gross reserves of 21 BCF and 674 MBO associated with proposed development plan
- Additional unquantified contingent resources provide optionality and running room
- Highly experienced and proven management
- Project largely de-risked
Grand Slam (Figure 1) offers and attractive opportunity to acquire 53.06% working interest by drilling three (3) development wells in the thickest portion of the Claughton A&B reservoirs (Frio Fm), that will recover ~21 BCF & 647,000 Bbls of gross reserves at a total capital expenditure of approximately
Grand Slam is a liquid-rich gas field discovered in 2000 by the completion of the Runnells Gas Unit Well No.3. The discovery well initially produced 22 MMscfpd. Located in the heart of the
Reserves volumes reported below (Table) are the result of a third-party reserves evaluation as of
The table below shows the Total Proved Undeveloped (PUD), Probable (2P) and Possible (3P) reserves in Gross and Net to CEP. Chapman's reserves evaluation only considers the proposed three (3) well development plan. Other resources could be produced with additional infill drilling locations as estimated by the Operator.
Arcadia is a 93-year-old independent
Forward Looking Statement
Cautionary Statement Regarding Forward-Looking Information This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals or future plans. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in CEP's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
Glossary
Bbls: barrels of crude oil
BCF: Billion Cubic Feet of natural gas
Bcpd: barrels of condensate per day
MMscfpd: Millions of standard cubic feet of natural gas per day (gas volume at 60°F and 14.65 psia)
MBO: Thousands of barrels of Oil.
Qualified Person's Statement
The technical information contained in this press release has been reviewed and approved by
SOURCE
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