WesCan Energy Corp. press release
Blackpool Exploration Ltd. - Update on prior announcements
TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
CALGARY, Sept. 8 /CNW/ - Blackpool Exploration Ltd. (BPX.A: TSX Venture Exchange) provides the following updates to prior announcements pertaining to the activities of the Company.
a) Acquisition of C2 Energy Inc: A press release dated March 7, 2005 relevant to the C2 Energy Inc. acquisition advised that additional data would be forth coming subsequent to closing. Accordingly the following information is now provided. On May 28th, 2005, Blackpool Exploration Ltd. acquired all of the outstanding shares of a private company, C2 Energy Inc. In purchasing C2 Blackpool acquired reserves with values as follows:
<< Company's Interest in Reserves Crude Oil Natural Gas NGL's MBbl MMcf MBbl Gross Net Gross Net Gross Net
Proved Developed Producing 36 30 645 566 5 3
Proved Developed Non-Producing 4 5 127 99 0 0
Total Proved 40 35 773 665 5 3
Probable Developed 91 71 1450 1148 7 4
Probable Undeveloped 23 20 10 7 0 0
Total Probable 115 90 1460 1155 7 4
Proved + Probable 155 125 2233 1820 12 8
Net Present Value of Net Production Income M$ Undis- Discounted counted
0% 5% 8% 10% 15% 20%
Proved Developed Producing 4540 4126 3915 3788 3508 3272
Proved Developed Non-Producing 871 779 733 706 645 595
Total Proved 5410 4905 4649 4494 4154 3867
Probable Developed 9662 7267 6284 5752 4729 4002
Probable Undeveloped 646 535 482 451 386 334
Total Probable 10308 7802 6766 6204 5115 4336
Proved + Probable 15718 12708 11415 10698 9269 8203
The reserve numbers and values are based on an engineering report dated January 1st, 2005 prepared by Martin and Brusset, Petroleum Consultants in accordance with the COGE Handbook. The estimated values disclosed above do not represent fair market value. The above noted values are before tax and have been generated using constant pricing and unescalated costs. This constant price evaluation has been prepared based on the following prices:
Alberta Average Spot Gas $7.21/MMBtu Average Edmonton Posted (40 API) Oil $51.32/Bbl Propane at Edmonton $40.23/Bbl Butane at Edmonton $47.39/Bbl Condensate at Edmonton $55.08/Bbl
Blackpool estimates that the undeveloped land inventory of 20,200 net acres acquired in the C2 purchase has a value of approximately $4 million based on an estimated per acre value of $200. This land value is an estimate generated by Blackpool staff based on Crown land sales on the Peace River Arch over the period from January 1, 2002 to present. Blackpool also acquired 100 square miles of three dimensional seismic data and 350 miles of two dimensional seismic data in completing the acquisition of C2. This seismic has been assigned a replacement value by Blackpool management of $30,000 per square mile of three dimensional data and $1,500 per mile of two dimensional data for a total replacement value of $3.5 million.
b) Private Placement Announced June 29, 2005: The following information was filed on Sedar on July 27, 2005 but was inadvertently not disseminated by Canada Newswire at that time:
Blackpool Exploration Ltd. is pleased to announce that on July 18, 2005 it closed its private placement of 1,800,000 flow-through common shares of the Company at a price of $0.55 per share for total proceeds of $990,000.00. Attached to each flow-through share is a warrant entitling the holder to purchase one additional share, also issuable on a flow-through basis, at a price of $0.75 per share on or before January 18, 2007. The purchaser of the flow-through shares and warrants is at arms-length to the Company and this private placement will not result in a change in control of the Company. A hold period of 4 months will apply to the shares issued. No commissions were paid under this private placement.
c) Proposed Private Placement: In announcements dated June 30, 2005 and July 6, 2005, Blackpool noted a potential private placement of 2 million units at $0.50 per unit. The Company will not be proceeding with the private placement at this time.
d) Terry McCallum: Blackpool announced in a press release dated July 4, 2005 that Terry McCallum had been hired as Vice-President, Exploration. On July 6, 2005, Mr. McCallum resigned as Vice-President, Exploration of Blackpool Exploration Ltd. citing "personal reasons".
e) Reserves Data and Other Information: Blackpool filed its annual Statement of Reserves Data and Other Information for the year ended December 31, 2004 with the Canadian Securities Regulatory Authorities pursuant to National Instrument 51-101. A copy of this document may be obtained electronically from the SEDAR system at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. >>