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Stockwatch News Item
E3 Energy Inc (C-ETE) - News Release
E3 Energy acquires oil reserves in east-central Alberta
E3 Energy Inc ETE
Shares issued 8,729,355 Apr 11 2003 close $ 0.65
Friday April 11 2003 News Release
Mr. Paul Starnino reports
E3 ENERGY INC. ANNOUNCES NEW CORE PROPERTY ACQUISITION
E3 Energy has acquired, from a senior Canadian oil and gas producer, crude oil reserves and production located in east-central Alberta for a purchase price of $3.05-million.
The assets, consisting of approximately 175 barrels per day in current oil production and 340,000 barrels of proved producing reserves, provide E3 with a number of infill/step-out drilling and rework opportunities.
The acquisition enables E3 to establish a second core operating area with asset characteristics consistent with its corporate strategy for accretive growth: high working interest (88 per cent), operatorship, year-round access, and multizone exploration and development potential. The acquisition of a stable production base, with optimization and exploitation potential, complements E3's strategy of establishing a portfolio of first-class exploration opportunities as a platform for future growth.
The acquisition has an effective date of Nov. 1, 2002, thereby having a net effective acquisition cost of approximately $2.5-million and reserves of 315,000 barrels, which will be financed 75 per cent by current cash on hand and 25 per cent from existing undrawn bank lines.
As a result of this exciting acquisition, E3 has revised its 2003 average daily production from 325 barrels of oil equivalent per day (boe/d) (6:1) to 425 boe/d and its 2003 exit rate from 450 boe/d to 600 boe/d. The combined current production will be 435 boe/d, weighted 55 per cent natural gas and 45 per cent oil and natural gas liquids.
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Vaughn |
