TORONTO, ONTARIO, Oct 15, 2009 - New Sage Energy Corp. (NSG), has initiated a strategy for the development of oil and gas projects in the US Gulf States region. The strategy is focused on "work-over" projects in areas with known historic producing formations and excellent existing infrastructure in Louisiana, Texas, and Alabama.
New Sage, through its wholly-owned subsidiary New Sage Energy USA Inc., has recently entered into an operating agreement with respect to an oil and natural gas well being drilled by Gulf South Operators Inc. of New Orleans, Louisiana. The well is targeted to reach a depth of 10,700 feet and is located near the town of Thibodaux in Lafourche Parish, Louisiana. New Sage will earn a 5% working interest in the well through the investment of US$112,000.00.
The agreement calls for the drilling of a normally pressured well structurally updip to production from multiple sands. The target structure is confirmed by dense subsurface control and 3D seismic data. Gulf South will serve as operator and the proposed well targets nine objective reservoirs. The drill location is on the down-thrown side of a listric growth fault with normal fault throw where strong gas production characteristics have historically been encountered. Close proximity to large faults increases the chance of good to excellent secondary porosity and permeability enhancement within sandstone reservoirs, particularly for those located near the targeted depth of this development well.
This investment by New Sage is the first part of a corporate strategy to secure energy production revenue. The Company is evaluating additional similar opportunities with Gulf South and other established operators in the prolific energy fields of the Gulf States region of Louisiana, Texas, and Alabama with the objective of building a production profile across a portfolio of projects.
Board of Directors has approved the granting of 1,100,000 stock options to the Company's directors, officers and consultants, subject to regulatory and TSX Venture Exchange approval. The options were issued with an exercise price of $0.10 per share and have a five year term. Pursuant to applicable securities legislation the options are subject to a four month and one day hold period.
About News Sage Energy
New Sage Energy is a Canadian oil and gas exploration company with a focus on opportunities in South America and the US Gulf States region.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by New Sage Energy Corp. The forward-looking statements or information contained in this news release are made as of the date hereof and New Sage Energy Corp does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
New Sage Energy Corp.
John Carlesso
President and CEO
416-309-4320
