American Leduc Petroleums Ltd. agrees to pay for 75% share of working interests in oil production of a Calgary based oil and gas company.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Sept. 15, 1995--American Leduc Leduc (ləd  k`), town (1991 pop. 13,970), central Alta., Canada, S of Edmonton. It is the center of the Leduc oil field (discovered 1947), which is now mostly depleted. Petroleums Ltd. agreed today to pay a Calgary based oil and gas company $4.65 million for a 75% share of its working interests in oil production and undeveloped acreage located in the Gift and Little Horse areas of northern Alberta Norhern Alberta is a region located in the Canadian province of Alberta.Its primary industry is oil and gas, with large heavy oil reserves being exploited at the Athabasca Oil Sands and Wabasca Area in the east of the region. . Another company has agreed to purchase the remaining 25% share of the vendor's interest. American Leduc will, as a result of this transaction, add 16,870 acres (net) to its land base (an increase of 160%). American Leduc will act as operator for the eight wells currently in production on the Little Horse property, while acquiring an interest in 11 additional non-company operated producing wells in the Gift area. Working interests in the acquired properties range from 18.75% to 75%. Current production from these properties will add 350 bbls (net) of oil per day to the company's production capacity. The acquired additional proven reserves (net) to American Leduc will be 550,000 BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip , a 50% increase to the current reserve base of the company. Extensive 3-D seismic surveys have been conducted over the properties delineating significant exploration possibilities. The company intends to implement an exploration program on the undrilled sections that will initially involve the drilling of at least two additional wells during the 1995/96 winter season. This transaction is scheduled to close by Sept. 29, 1995. Under the agreement, American Leduc will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to production revenues from Aug. 1, 1995, forward. American Leduc intends to pay for the properties using approximately $1.4 million of its available cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , with the balance of the purchase price coming from bank financing. CONTACT: P.F. Dawson, 403/262-7552 |
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