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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (224)	11/28/2012 10:56:33 PM
From: Goose94	Read Replies (1) \| Respond to of 203528

Lateral Capital (LCP-V) to acquire Frobisher, Alida assets Nov 28, 2012 - News Release Lateral Capital Corp. has entered into a purchase and sale agreement with an undisclosed company to acquire certain light oil reserves in the Frobisher and Alida reservoirs. The agreement provides for total consideration of $28.0-million with a non-refundable deposit of $1.0-million. The transaction will be financed through a combination of equity and debt financings, the terms and conditions of which will be announced shortly. The transaction is subject to customary closing conditions being satisfied and is scheduled to close in early 2013. Acquisition highlights Through the transaction, Lateral is acquiring a combination of operated and non-operated light oil assets, with an average working interest of 42 per cent in southeast Saskatchewan. The transaction has the following characteristics: Current production of 320 barrels per day as of September, 2012, 96 per cent weighted to light oil from the Mississippian-aged Frobisher and Alida carbonate reservoirs; Total proved reserves (1) of 1,126,000 barrels of oil equivalent and proved plus probable reserves of 1,539,000 boe; Proved plus probable reserve life index of 12.4 years; Net developed land of 3,206 acres and an undeveloped land base of 2,294 acres (average 49-per-cent working interest); A total of 25 square kilometres of 3-D proprietary seismic; Estimated annualized cash flow of $4.7-million (2); Operating netback of $49 per boe (2); Upside potential of 21 horizontal wells that have been identified, 15 of which have been booked by McDaniel & Associates Consultants Ltd.; Three 100-per-cent working interest proven undeveloped locations are identified in the Tatagwa and Weyburn fields; Bakken rights in 1,690 net acres with development potential at Pheasant and Innes lands, offsetting current industry activity; Potential for operational optimization, including well workovers, gathering and infrastructure modifications, and water disposal enhancements.