Mooncor acquires additional Ontario leases and divests of interests in Crossfield, Alberta and provides additional details on resource disclosure
MOO: TSX Venture Exchange
CALGARY, Jan. 8 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased to
announce that it has completed the assembly of its land package in Southwest
Ontario by purchasing 18,737 acres (18,592 net) within the Kent and Lambton
Counties of Southwest Ontario from a large multi-national oil and gas company
for $100,000. The leases acquired are immediately adjacent to Mooncor's
original 3,833 acre land position. The leases acquired were prepaid to end of
term, the majority of which expiring in late 2011.
Mooncor has identified six Silurian pinnacle drilling locations on its
original 3,833 acre land position based on geological mapping and gravity
work. The acquired leases also provide Mooncor with additional Silurian
pinnacle prospects as well as several potential oil offset locations. The
primary conventional plays for lands within the Kent and Lambton County area
are the Ordovician, Silurian - Salina and Devonian. The unconventional plays
include the Kettle Point Formation (Antrim style shale gas zones) and the
Collingwood/Blue Mountain Formation (Utica shale gas zones).
The Ontario government has recently completed a high resolution aeromag
survey over lands that cover the recently purchased land position as well as
Mooncor's original land position. The aeromag survey is now available to
exploration companies. A review of this survey over the newly acquired lands
is underway.
Mooncor believes that Ontario is an attractive exploration environment
due to high producer netbacks, low royalties and leasing costs, access to
exploration data, low transportation costs, easy road access and numerous
untested prospects. In addition, Mooncor believes Ontario will benefit
tremendously by application of advanced seismic techniques and the
implementation of improved drilling, completion and logging tools.
Mooncor is currently in negotiations with several entities in connection
with a proposed spinoff of its Southwest Ontario assets into another public
company. Further details will be communicated in due course, as appropriate.
Divesting of Crossfield, Alberta
Mooncor has also divested its interests in the Crossfield, Alberta
property to a private oil and gas company. The effective date of the
transaction is January 7, 2010. Net proceeds from the sale are $146,667.
Additional Disclosure to Previous News Release
The January 6, 2010 news release referred to Contingent plus Prospective
Resources of up to 10.57 trillion cubic feet (TCF) of Original Gas-in-Place.
This total should have been referred to as discovered and undiscovered
resources. The news release disclosed Contingent plus Prospective Recoverable
Gas-in-Place of up to 2.57 TCF. This quantity included high estimates of
contingent resources of 1.58 TCF and prospective resources of 0.99 TCF. The
best estimates were contingent resources of 0.36 TCF and prospective resources
of 0.11 TCF. The Contingent Resources should be regarded only as estimates
that may change as further production history and additional information
become available. The Prospective Resources estimated are those quantities of
petroleum that are potentially recoverable from accumulations yet to be
discovered and are not provided as a means of comparison to contingent
resources or reserves. The quantities that might actually be recovered may
differ significantly from the estimates provided. The effective date of the
DeGolyer and MacNaughton Canada Limited estimates was November 30, 2009.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and
development company. Mooncor is focusing on its shale gas opportunities with a
current emphasis on its high impact proven Muskwa shale gas play at Hamburg,
Alberta as well as structuring a spinoff of the Company's southwest Ontario
assets into a new entity.
The contingent resources estimated herein are those volumes of petroleum
that are potentially recoverable from the known accumulation but which are not
currently considered to be commercially recoverable. Because of the
uncertainty of commerciality, the contingent resources estimated herein cannot
be classified as reserves. The contingent resources estimates in this report
are provided as a means of comparison to other contingent resources and do not
provide a means of direct comparison to reserves. The contingent resources
estimated in the DeGolyer and MacNaughton Canada Limited report have an
economic status of "Undetermined."
The prospective resources estimated herein are those quantities of
petroleum that are potentially recoverable from prospects yet to be
discovered. Because of the uncertainty of commerciality and the lack of
sufficient exploration drilling, the prospective resources estimated herein
cannot be classified as contingent resources or reserves. The prospective
resources estimates in this report are not provided as a means of comparison
to contingent resources or reserves. There is no certainty that any portion of
the prospective resources estimated herein will be discovered. If discovered,
there is no certainty that it will be commercially viable to produce any
portion of the prospective resources evaluated.
There is no certainty that it will be commercially viable to produce any
portion of the resources.
The information in this news release includes certain information and
statements about management's view of future events, expectations, plans and
prospects that constitute forward looking statements. These statements are
based upon assumptions that are subject to significant risks and
uncertainties. Because of these risks and uncertainties and as a result of a
variety of factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and indicated by
these forward looking statements. Although Mooncor believes that the
expectations reflected in forward looking statements are reasonable, it can
give no assurances that the expectations of any forward looking statements
will prove to be correct. Except as required by law, Mooncor disclaims any
intention and assumes no obligation to update or revise any forward looking
statements to reflect actual results, whether as a result of new information,
future events, changes in assumptions, changes in factors affecting such
forward looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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/For further information: Richard Cohen, Vice-President (Corporate
Development), Mooncor Oil & Gas Corp., Tel: (905) 882-4422,
rcohen@mooncor.com; Jason Monaco, First Canadian Capital Corp., Tel: (416)
742-5600, jmonaco@firstcanadiancapital.com/
