Kilimanjaro Capital, (OTC: KIMJF) after announcing its Letter of Intent to acquire oil and gas assets in southern Alberta, last week, has now obtained the technical data from an NI 51-101 report.
The company told NewsBlaze today that the assets are in 58 sections of land covering 15,000 hectares in the Long Coulee and Parkland regions of Alberta, Canada. As we reported last week, these sections are currently held by Verity Energy Ltd., a privately held Alberta corporation that explores and develops oil and gas properties in the western Canadian sedimentary basin. There are also 27 sections of crown land, for which royalties would be payable. The total area available adds up to 22,000 hectares.
The 58 sections are already under production, with about 190 wells operating. According to the latest press release announcing the data, an additional 50 wells could be drilled in those sections, or a total of 200 with “down spacing.”
The Long Coolee area is south east of Calgary, in an area with Glauconitic and Lithic channels, that generally form excellent reservoirs for oil and gas.
Current production of the 190 existing wells is 680 mcf/d of gas and approximately 5 bbls/d of oil and liquids. Approximately 280 mcf/d gas is currently shut-in awaiting a contract for gas processing. That contract is anticipated to be completed in the very near future.
The Assets 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. Geology also suggests the potential for liquids production from the Glauconitic and Lithic channels which appear to be present on portions of the Long Coulee property.
The NI 51-101 Report was prepared by AJM Deloitte, with an effective date of December 31, 2013, using AJM’s March 31, 2014 pricing. This report shows that the Long Coulee asset has a Proved plus Probable value – assuming a Net Present Value discounted to 10% – of $1.41 million.
Current Proved Developed Production at 10% NPV is 41,800 boe, and Proved plus Probable at 10% NPV is around 221,700 boe.
Today’s Press release on Marketwired:
Kilimanjaro Announces Long Coulee Reserves
Previous NewsBlaze story:
Kilimanjaro Capital Signs LOI To Acquire Assets in Alberta Yielding Up To 160 boe/d