PROPERTY ACQUISITION / Ionic Energy Inc. Announces Four Asset
Acquisitions Within West Central Alberta Core Operating Area
ASE SYMBOL: IOI
JUNE 2, 1998
CALGARY, ALBERTA--Ionic Energy Inc. announces it has signed
letters of intent to purchase four producing and non-producing
assets from three parties. These acquisitions, valued at $4.1
million, will be funded by existing bank lines, and are subject to
regulatory approval and certain rights of first refusals.
At Meyer South, where Ionic currently has 1,050 mcf/d of gas
production, Ionic has secured an interest in a natural gas plant
which will reduce processing costs associated with Ionic's current
production stream. The asset further includes interests in wells
producing a net 1,000 mcf/d, effectively doubling Ionic's
production in this area. Behind pipe zones identified in the
various wellbores will help Ionic optimize overall property
performance.
At Carvel/ Cardiff, within Ionic's active West Central Alberta
core exploration area, Ionic has purchased controlling ownership
and operatorship in two compression facilities with extension
gathering systems. Current net production acquired is 2,100
mcf/d, with three shut in wells to be tied in. The transactions
include undeveloped land within an active corridor of exploration
for both Ionic and industry competitors.
These acquisitions complement Ionic's current producing assets and
exploration efforts and thrusts Ionic's production to 1,200 boe/d.
Ionic will continue to focus on building shareholder value
through an aggressive and expanding exploration program
complemented by value driven acquisition opportunities. |
