Northamerican Energy Group to Acquire Leases
HOUSTON, Aug. 14, 2006 (PRIMEZONE) -- Northamerican Energy Group Corporation (Pink Sheets:NNYG) announced today that it has signed an agreement to acquire the Southeast Montana Muddy Gas Prospect with General American Oil Properties of Golden, Colorado.
These leases are for 100% of the working interest, and 82.5% of the net revenue interest, and are located in Carter County, Montana.
The leases are for seven (7) Federal and one (1) State lease on approximately 12,955 acres located northeast and adjacent to the Hammond Field that produced gas from 1977 through 1985 and was still producing gas prior to being shut in.
Northamerican has identified in excess of 96 potential drill sites and each site is to be drilled and operated as shallow natural gas wells into the 1300-1900' Muddy Sandstone formation.
The Geological Due Diligence Study, performed by an independent reservoir and engineering firm hired by Northamerican, indicate estimated gas reserves per well of 200-250 Million MCF, based on 80 acre developmental spacing.
This acquisition adds reserves estimated at 19 to 23 billion of gas equivalent based on 96 wells at 135 acre spacing and is valued at $133-170 million based on current natural gas prices.
"We are extremely pleased that we are finally able to conclude the acquisition of this valuable, gas rich, piece of property," stated Jon Ginder, Northamerican Energy Group's CEO.
In addition Northamerican intends to test drill the deeper (3500') Minnelusa structure on the northwestern acreage block because seismic interpretation indicates faulting similar to that found in the nearby northeast Powder River Basin that have produced 5-10 MMBO from the Minnelusa. |
