PROPERTY ACQUISITIONS / Remington & CNQ
REMINGTON ENERGY PURCHASES CANADIAN NATURAL RESOURCES INTERESTS AT WEST STODDART AND RED CREEK
Symbol: REL - TSE
CALGARY, July 28 /CNW/ - Remington Energy Ltd. (Remington) announces that
it has entered into a letter of intent with Canadian Natural Resources (CNR),
pursuant to which Remington will acquire CNR's interest in both West Stoddart
and Red Creek, British Columbia which properties are contiguous with
Remington's West Stoddart, Cache Creek and Red Creek properties. The purchase
price is $127.5 million plus Remington's Buick Creek property which is
currently producing 1.1 mmcf/d. Upon closing, this transaction eliminates the
requirement to unitize the West Stoddart Doig pools as Remington's interest in
the Doig pools will be 100%.
The net production gain to Remington will be 4,500 boe/d. Remington
assigns 14.6 million boe's proven and 22.5 million boe's proven plus half
probable to the acquisition. This will increase Remington's overall production
to 21,000 boe/d prior to gas injection at West Stoddart.
Along with the producing assets, Remington acquired 5.5 sections of
undeveloped land at West Stoddart and Red Creek.
The transaction is effective August 1, 1998 and is set to close on August
14th. The transaction is subject to due diligence, regulatory approval, and
both companies final Board of Directors approval. This transaction will
initially be debt financed.
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For further information: Paul R. Baay, President & C.E.O., 600, 550-6
Avenue SW, Calgary, Alberta T2P 0S2, Phone: (403) 269-9309
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