FINANCING / Devlan Exploration Inc. Completes Private Placement
CALGARY, Dec. 31 /CNW/ - DEVLAN EXPLORATION INC. is pleased to announce
that it has completed two private placements. Gross proceeds to the
Corporation are approximately $450,000 and $500,000.
Devlan will use the net proceeds from the Flow Through common shares to
incur Canadian exploration expenses and Canadian development expenses on its
properties at Lethbridge, Alberta and its recently acquired property at Marten
Hills in North Central Alberta.
Devlan is also pleased to announce that it has completed the purchase of
the Marten Hills property in north central Alberta for cash consideration of
$5.175 million. The property includes two identical dehydration/compression
packages and 28 miles of gathering and sales pipeline. In addition to the
facilities, Devlan is acquiring 56,872 net undeveloped acres with four
producing gas wells that averaged an aggregate 2,000 mcfd net production
during a production audit carried out by Devlan personnel during the first
week of December 1998.
Production is from the Viking, Colony, Sparky, and Clearwater Formations
at depths from 400 to 700 metres. Proven Gross Company Reserves, as reported
by an independent engineering firm, is 5.284 Bcf.
The Company will begin optimization and exploitation of the property
immediately and expects to bring on an incremental 2,000 mcfd soon thereafter
by improving operating practices and perforating two wells with significant
bypassed pay.
DEVLAN EXPLORATION INC. is a Calgary based oil and Natural Gas Company
focused on asset optimization and production enhancement. Devlan's current
exploration and production activities are concentrated on Company operated
natural gas properties in Alberta. |
