ACQUISITION / Remington Energy to acquire Petroleum & Gas Assets in BC
REMINGTON ACQUIRES ADDITIONAL INTEREST AT WEST STODDART/CACHE CREEK
CALGARY, March 4 /CNW/ - REMINGTON ENERGY LTD. (''Remington'') announces
that it has entered into an agreement with an existing joint venture partner,
Okanagan Petroleums Limited (''Okanagan'') to acquire petroleum and natural
gas assets in the Cache Creek and West Stoddart areas of British Columbia for
total consideration of $6,500,000 in cash and 350,000 common shares. The
purchase price for the properties is based on independent third party
engineering evaluations. Linda W. Martinson is the Secretary of Okanagan
Petroleums Limited and a director of Remington.
The properties to be acquired and which are operated by Remington consist
of 11,217 gross (1,000 net) acres, 14 producing crude oil wells (1.4 net), 5
shut-in crude oil wells (1 net), 3 producing gas wells (0.26 net), 3 shut-in
gas wells (0.26 net) and a 10% interest in the West Stoddart facility. The
acquisition will result in an increase of Remington's working interest at
Cache Creek by 7.5% and at West Stoddart by 10%. Overall production additions
will be approximately 540 boe/d which will be further enhanced with the 1998
drilling program and the implementation of a gas cycling project at West
Stoddart. Based on independent engineering evaluations, Remington will
acquire 1.7 mmboe proven reserves and 2.79 mmboe proven plus probable
reserves. In connection with the transactions, Remington will enter into a
farmin agreement with Okanagan entitling Remington to earn 50% of the
interests held by Okanagan in undeveloped lands in the Cache Creek and West
Stoddart areas.
The transactions will be effective January 1, 1998, with closing
anticipated to occur in March 1998. The transactions are subject to a
number of conditions including completion of formal documentation, approval by
Remington's board of directors and regulatory approval.
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