CALGARY, July 19, 2011 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") is pleased to announce that the Corporation has entered into a farm-in agreement to drill an exploratory well in the Hamburg Area of Alberta with an option for follow-up drilling. The election was made pursuant to the exercise of an option to acquire 3D seismic on a minimum of four square miles covering the Option Lands.
Carmen has entered into a farm-in with four private companies (collectively the "Farmor") which may result in Carmen earning a 50% working interest in two option blocks comprising four sections or 2,560 acres of natural gas and liquids-rich prospective lands in the Hamburg Area of Alberta. The Farm-in agreement allows Carmen to become the operator and earn a 50% working interest in one option block comprising two sections or 1,280 acres of the prospect by incurring 100% of the costs to drill to the contract depth, abandonment, capping or completion, equipping and tie-in to the inlet of a processing plant for an option well prior to February 15, 2012. The Corporation can earn the second option block consisting of an additional two sections or 1,280 acres, subsequent to fulfilling the Corporation`s obligations for the first option well, by electing to exercise its option to drill the second option well within 90 days of rig release date for the first option well and spudding the second option well within nine months of the Corporation`s election to drill the same. Carmen will earn in on the first and second option blocks to the base of the deepest formation penetrated by the first and second option well drilled on the respective option block.
The Hamburg Area option wells are subject to Crown royalties and a convertible sliding scale (5 per cent minimum - 15 per cent maximum) on crude oil and 15% on all other petroleum substances overriding royalty payable to the Farmor.
Carmen`s President and Chief Executive Officer, Brian Doherty stated that, "Carmen is pleased to have obtained a multi section position within this very prospective area of the Province. The Hamburg Area has a great history of significant and prolific production and the area has recently seen an increase in land sale prices. We expect the Hamburg Area to become a core area for us."
About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas exploration and production company. The focus is on exploration and development of the Western Canadian Sedimentary Basin. The current portfolio also includes the Jumpbush properties in south eastern Alberta and the Ferrybank properties in central Alberta.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, the earning of working interests in the Hamburg Area; the operatorship of Carmen under the farm-in agreement and information with respect to the Corporation's beliefs, plans, expectations, anticipations, estimates and intentions and the activities of the Corporation in connection with the farm-in agreement. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Corporation's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licences and leases in the conduct of its business, reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof.
The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on the Corporation's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME UNLESS REQUIRED UNDER APPLICABLE SECURITIES LAWS.
