MOO: TSX Venture Exchange
CALGARY, Aug. 25 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased
to announce that BOE Solutions Inc. of Calgary, Alberta, has completed a
comprehensive report, "Advanced Flow Analysis". The main objective of the
study was to compare Mooncor's Muskwa Formation shale gas play at Hamburg in
northwest Alberta with the better-known and highly-publicized shale gas
discoveries in the Horn River Basin of northeast British Columbia. A copy of
the report will be posted on Mooncor's website at www.mooncor.com.
BOE Advanced Flow Analysis Summary
BOE Solutions' "Advance Flow Analysis" for Hamburg Muskwa, a technical
non-compliant NI 51-101 study, yields the optimal development scenario of 24
BCF of liquids-rich recoverable gas per section (3 wells per section, 8 fracs
per well) over 50 years, or about 40% of the estimated ultimate recovery for
Horn River wells which will require 10 wells versus Mooncor's 3 wells. Vastly
greater permeability at Hamburg, however, leads to significantly better short
term economic results with 5-year cumulative production of about 2.5 BCF per
well per section (3 wells, 8 fracs/well) compared to Horn River's 1.8 BCF per
well per section (10 wells, 8 fracs/well). Using the industry-standard GLJ
price forecast and current Alberta Crown royalty incentives, Mooncor's optimal
case horizontal development program for the Muskwa shale gas play at Hamburg
yields a before-tax rate of return of about 21%. With 162 sections of 100%
working interest land, Mooncor's Hamburg play could lead to about 500 new
wells and about 3.9 TCF total estimated ultimate recoverable gas.
Tristone Capital Inc.
As announced in Mooncor's press release dated July 29, Tristone Capital
Inc. was engaged to source a joint venture partner, outright purchase, or
other similar transaction for Mooncor's Muskwa shale gas play at Hamburg.
Tristone is actively preparing documentation and setting up an online as well
as a hard copy data room in Calgary.
Drilling Program at Hamburg
Mooncor is advancing plans to drill the company's first horizontal well.
Mooncor plans to spud this well in the Fall of 2009 and anticipates it will
take 30 days to drill and 30 days to complete a fracture stimulation program.
The tie-in of the well can be completed immediately thereafter as all the
facilities, including pipelines and processing, are in the area. A 400 million
cubic feet/day gas plant that is currently processing 30 million cubic
feet/day is nearby.
DeGolyer and MacNaughton Canada Limited Report
Mooncor has engaged DeGolyer and MacNaughton Canada Limited,
commissioning them to complete a second report estimating the resource numbers
for the additional 46,720 acres (73 sections) of land purchased by Mooncor on
April 29, 2009 at Hamburg. DeGolyer and MacNaughton is a worldwide petroleum
consulting firm based in Dallas.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and
development company with unconventional shale gas, light oil and heavy oil
projects in Saskatchewan, Alberta and South Western Ontario. Mooncor is
focusing on its shale gas opportunities with a current emphasis on the high
impact proven shale gas play in the Western Canadian Sedimentary Basin.
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.
