To: skwint who wrote (6659 ) 7/20/1999 8:52:00 PM From: kingfisher Respond to of 24940
CIGAR OIL & GAS LTD. - UPDATES ACTIVITY CALGARY, ALBERTA-- Rainbow, Alberta Cigar Oil & Gas Ltd. announces that it has closed a property acquisition in the Rainbow Area of North West Alberta from a major independent company. The interests acquired consist of 78 boe/d of light oil and gas production (92% light oil) primarily from the Devonian Keg River Formation, an interest in facilities, and shut in/suspended wells. The purchase price for the acquisition was $675,000 cash less adjustments. The transaction closed on June 29, 1999 with an effective date of May 01, 1999. The company is currently evaluating further development potential on the lands and includes approximately 140,000 boe (proven + 1/2 probable) of reserves net to Cigar's interest. Sahtenah, B.C. Prospect Cigar is participating in the drilling of a test well on the company's Sahtaneh project to evaluate the gas potential in the Jean Marie formation. The well will be drilled at d-90-J/94-I-12 to a total depth of 1400 meters then a 1500 meter horizontal leg will be drilled. Cigar will pay 15% of the well costs to earn 15% before payout and 10% after payout in the well and a 10% working interest in an additional 5,760 acres of land surrounding the test well. Cigar will have options to participate in the drilling of additional wells to earn a further 13,780 acres of land on the prospect. The well commenced drilling on June 22, 1999 and should reach total depth in early July 1999. Cigar Oil & Gas Ltd. is an oil and gas exploration, development and production company with activities focused in Western Canada. For further information, please contact: Brian H. Gore (403) 266-3030 President & Chief Executive Officer THE ALBERTA STOCK EXCHANGE NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN. Cigar Oil & Gas Ltd. 2200, 700 - 6th Avenue S. W. Telephone: (403) 266-3030 Calgary, AB T2P 0T8 Fax: (403) 263-2569 -------------------------------------------------------------------------------- Legal Notices Privacy Statement -------------------------------------------------------------------------------- New User Français Corporate Links Basic Plus Industry Watch About Carlson Online Basic About Carlson Online Plus About Carlson Online industry watch Quotes & Market Stats Equity Search Today's Headlines Compare Equities Canadian Company information Insider Trades US company information Short Positions © Copyright Carlson Online Services Inc, 1996-1999. All rights reserved.