CALGARY, Dec. 15 /CNW/ - Eagle Rock Exploration Ltd. ("Eagle Rock" or the
"Company") (TSXV:ERX) is pleased to announce it has closed the arm's length
acquisition of the outstanding shares of three private oil & natural gas
companies (collectively, the "Privatecos") for an aggregate cash consideration
of $4.5 million, allocated as to approximately $4.1 million for petroleum and
natural gas interests and $0.4 million for working capital.
Collectively, the Privatecos hold a 100% working interest and
operatorship in a natural gas property in the Conrad area of southern Alberta
and a 74.5% working interest and operatorship in an oil property in the
Beverley area of southwest Saskatchewan.
The acquisition metrics, based on total consideration on a cost per
flowing barrel of equivalent, is $43,010. The Beverley property includes a
facility which will accommodate the Company's current production from the area
and thereby eliminate third party processing costs.
The acquisitions of the Privatecos, which have an effective date of
October 1, 2008, are expected to add production of approximately 28 bbls/day
oil and 390 mcf/d natural gas.
Jim Silye, President and CEO of Eagle Rock noted that "with this
transaction, Eagle Rock has expanded its Beverley oil play in southwest
Saskatchewan and these properties will provide additional impetus for growth
in both reserves and production going forward."
About Eagle Rock
Eagle Rock Exploration Ltd. is a publicly traded energy company involved
in the exploration and development of low to medium risk oil and gas
properties in Western Canada.
Eagle Rock Exploration Ltd. trades on the TSX Venture Exchange under the
symbol ERX.
For more information please visit us at www.eaglerockexploration.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Forward-looking Information
This press release includes forward-looking statements and assumptions
respecting Eagle Rock's strategies, future operations, expected financial
results, financial sources, commodity prices, costs of production and quantum
of oil and natural gas reserves and discusses certain issues, risks and
uncertainties that can be expected to impact on any of such matters. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties that can significantly affect future results. Actual future
results may differ materially from those assumed or described in such
forward-looking statements as a result of the impact of issues, risks and
uncertainties whether described herein or not, which Eagle Rock may not be
able to control. The reader is therefore cautioned not to place undue reliance
on such forward-looking statements. The forward-looking statements contained
in this news release are made as of the date hereof and Eagle Rock undertakes
no obligation to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by applicable securities laws. The forward-looking statements
contained in this news release are expressly qualified by this cautionary
statement. In addition, the term BOE or BOE's may be misleading, particularly
if used in isolation. A BOE (barrel of oil equivalent) conversion ratio of 6
Mcf per one (1) BOE is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
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