Cougar Oil and Gas Canada has purchased a further three land sections at an Alberta Provincial Government land sale.
These land sections are located at the south border of the lands, which was acquired by the company in July 2010 and the three-dimensional seismic campaign was performed in early 2011. This seismic program found the extensions of reserves and Cougar’s uncalculated Trout Core oil properties’ Reserves Assessment and Evaluation was proclaimed in July 2011.
The completion of this review is dependent on the current data in the public area along the wide Cougar three-dimensional seismic campaign placed a net present value of $77.4 million Cdn that is 10% discounted for proven (P1), probable (P2) and possible (P3) and a calculated 2.7 M barrels recoverable P1+P2+P3 from the project. The report is dependent on a formerly reported logical development plan along with a 2-4 well drilling campaign that is to be followed by a 4-6 well campaign.
The CEO of the company has stated that Cougar is delighted with the expansion of the lands purchased depending on the geological tests with structure extensions found during the three-dimensional seismic program. The company received inconclusive results from the horizontal well because of inadequate pumping potential along with the currently available equipment to accurately examine the well, the sustained Rainbow Pipeline was closed since April and this resulted in the transport of oil to markets in the truck in a 12 hr round trip frequently in the severe weather, gave concessions to contract prices, and the wild fires in the Slave Lake region in early May, during which time the objective was to continue the production in the wells. Also, the company is advancing the projects.
The company is ready to proceed with a drill program as and when the financing is sourced. The engineering report finds that this project has the prospective to add income, calculated money flow along with pay outs in 130 days and adds considerable proven reserves after the wells produces for six months, while enduring the objective of reaching production to 2000 bbl/d from operations.
Source: http://www.cougarenergyinc.com/