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Press release from Marketwire

Celtic Completes Acquisition Of Assets at Grande Cache

Wednesday, November 30, 2011

Celtic Completes Acquisition Of Assets at Grande Cache18:56 EST Wednesday, November 30, 2011CALGARY, ALBERTA--(Marketwire - Nov. 30, 2011) - Celtic Exploration Ltd. (TSX:CLT) ("Celtic" or the "Company") has closed its previously announced acquisition of natural gas assets at Grande Cache, Alberta, adjacent to Celtic's core area at Resthaven, for cash consideration of $50.0 million, before closing adjustments. The acquisition has an effective date of July 1, 2011. The Company has received confirmation from its lenders, whereby, Celtic's available bank credit lines will be increased by $25.0 million to $275.0 million.Assets to be Acquired The assets are located in Alberta between townships 58 and 62 and ranges 6 to 10 west of the sixth meridian, directly west of Celtic's Resthaven lands. Recent natural gas production from the assets to be acquired was approximately 15.0 million cubic feet per day or 2,500 BOE per day, of which approximately 50% is operated. The acquisition also includes approximately 61,000 net acres (95 sections) of lands, of which approximately 33,000 net acres (51 sections) are undeveloped. The majority of the lands contain Cretaceous rights, including the Cardium, Dunvegan, Cadotte, Falher, Bluesky, Gething Cadomin and Nikanassin formations.An independent reserve evaluation was prepared for the vendor by GLJ Petroleum Consultants Ltd. ("GLJ") effective March 31, 2011. In the report, GLJ assigned 4.7 million BOE of remaining proved producing reserves and 6.1 million BOE of remaining proved plus probable reserves. Average royalties are approximately 16% and production expenses are currently below $6.00 per BOE. In addition, the Company acquired a 30.0% working interest in the Copton gas plant located at 11-25-059-09W6; a 7.0% working interest in the Narraway gas plant located at 10-08-062-10W6; and interests in various compressors and gas gathering pipelines.The Company has identified several horizontal drilling opportunities on the Grande Cache asset base that has previously been developed using only vertical wells. The assets are complementary to Celtic's land holdings at Resthaven where the Company has recently completed drilling a horizontal well in the Cretaceous Falher formation.Advisory Regarding Forward-Looking StatementsCertain information with respect to Celtic contained herein, including management's assessment of future plans and operations contain forward-looking statements. These forward-looking statements are based on assumptions and are subject to numerous risks and uncertainties, certain of which are beyond Celtic's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency exchange rate fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers, stock market volatility and ability to access sufficient capital. As a result, Celtic's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements contained herein are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.Other MeasurementsAll dollar amounts are referenced in Canadian dollars, except when noted otherwise. Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas and sulphur.FOR FURTHER INFORMATION PLEASE CONTACT: David J. WilsonCeltic Exploration Ltd.President and Chief Executive Officer(403) 201-5340ORSadiq H. LalaniCeltic Exploration Ltd.Vice President, Finance and Chief Financial Officer(403) 215-5310ORSuite 600, 321 - 6th Avenue SWCeltic Exploration Ltd.Calgary, Alberta, Canada T2P 3H3www.celticex.com