Kilimanjaro Capital (OTC PINK:KIMJF) says it will expand its area of operations in Canada, adding to previously announced plans.
Last month, Kilimanjaro Capital signed a letter of intent with Canadian company, Verity Energy Ltd., to acquire some of their assets in Alberta, Canada.
Verity Energy Ltd., based in Calgary, Alberta, controls properties in at least seven widely dispersed locations within the province.
The assets covered by the previously-announced Kilimanjaro Capital/Verity Energy Ltd. LOI are expected to yield up to 160 boe/day, according to Kilimanjaro Capital. – see this story: Kilimanjaro Capital Signs LOI To Acquire Assets in Alberta Yielding Up To 160 boe/d.
A new press release issued yesterday, said that previous letter of intent has been expanded, to include oil-producing assets on “the Keho Property,” located in southeastern Alberta. This new addition to the LOI is already producing around 11 bbl/d oil. The company says the Keho property recently had improvements to the waterflood recovery program, and they anticipate that as the waterflood fills voidage, oil production may increase to 20 bbl/d. They have also identified additional drilling locations on the Keho property.
An NI 51-101 reserves report, effective December 31, 2013, by AJM Deloitte, using AJM Forecast Pricing as of March 31, 2014, showed the Proved plus Probable value of the Keho Property is estimated at $4.44 million (NPV 10%).
Here are the detailed Reserves as reported by AJM Deloitte:
Keho Units PDP Proved P+P Oil & NGL Mbbl 25.7 98.4 160.8 Value (NPV 10%) $ $727,200 $2,766,700 $4,438,700
As noted in the previous story and press release, the assets originally covered by the LOI are located in the Long Coulee/Parkland area of Alberta and production is predominantly from the Belly River, Medicine Hat, Bow Island and Mannville formations. The Keho property is around 160 km west of Medicine Hat and about 30 km north of Lethbridge and the Belly River site, and about 100Km north of the Montana border.