CORP. / Marengo Exploration Class A Shares now trade on ASE
MARENGO EXPLORATION LTD. announces that its Class A Shares have commenced
trading on the Alberta Stock Exchange under the symbol "MRO.A".
Marengo closed its initial public offering at the end of December, 1997 for
gross proceeds of $4,647,000. Marengo has 3,894,100 Class A Shares and
408,936 Class B Shares outstanding. Marengo is managed by Bill Petrie,
President and Larry Bozohora, Vice-President. Joining Messrs. Petrie and
Bozohora on the board of directors are Rick Braund and Harley Winger.
Since December 1, 1997 Marengo has participated in the drilling of five
successful oil wells, one successful gas well and one suspended re-entry, all
in the Smiley area of west-central Saskatchewan. Marengo's current net oil
production capacity is over 200 BOPD. However, due to current weak commodity
prices, production rates have been reduced resulting in current net
production to the company of 126 BOPD. Construction of a battery is underway
on the Smiley property, which will significantly reduce operating costs, and
together with an anticipated narrowing of price differentials for the
Company's heavier crude this summer, is expected to considerably improve
Marengo's netbacks.
The Company has also entered into an agreement with AltaGas Services Ltd. to
process and transport its shut-in gas reserves from the Company's Flaxcombe
property, also located in west-central Saskatchewan. Production is expected
to begin in the second quarter of 1998 at a net rate to Marengo of 1 million
cubic feet per day (100 BOEPD). An additional well is planned for this
property in the third quarter.
Marengo's immediate activity will include three new exploratory wells prior
to breakup in the Smiley and Hoosier areas. These wells will earn lands
which, if the earning wells are successful, will be put into Marengo's
development inventory until heavy oil prices improve.
The Company is expanding its areas of focus to include a Devonian light oil
prospect at Chigwell in central Alberta where review of a 3-D seismic survey
is currently underway; as well as evaluation of a light oil pool in southeast
Saskatchewan for possible acquisition and subsequent horizontal drilling.
For further information contact Mr. Bill Petrie, President of Marengo
Exploration Ltd. at (403) 237-66l2. |
