Acquisition of oil and gas interest
TORONTO, Oct 20, 2004 (BUSINESS WIRE) -- Biogenerics Inc. (the Company) (Pink Sheets:BIGN) has entered into an agreement (the Agreement) with 2021877 Ontario Inc. (the Vendor) pursuant to which Biogenerics will acquire 30% of the Vendor's interest in certain petroleum and natural gas assets (the Assets) located in Southwestern Ontario.
The Assets are comprised of varying working interests in producing and exploratory lands and reserves having significant upside production potential. Two producing wells and four shut-in oil and gas wells are included in the acquisition.
The Assets include a fifty percent working interest (50% WI) in over 15,000 acres of producing and non-producing crown exploration licenses on Lake Erie. Producing Lake Erie properties are comprised of a 1,600 acre pooled spacing unit operated by Talisman Energy Inc. (TSX:TLM). Pursuant to the terms of the pooling agreement 2021877 Ontario Inc. owns a ten percent gross overriding royalty interest (10% GORR) on petroleum and natural gas produced from the pooled lands. Oil from the unit is produced from the longest horizontal well drilled in North America to date. Completed in January 2003 this well was placed on production at an initial rate (IP) of over 400 BOPD.
Talisman recently completed a second horizontal well within the pooled spacing unit. Analysis of the logs and drilling data was very encouraging; however, no initial production rates have been released to date. 2021877 Ontario Inc. owns a fifty percent working interest (50% WI) in 2,520 acres comprising 4 exploration licenses directly offsetting and on trend with the pool under development within the drilling spacing unit.
The Assets include a 46.67% non-operated working interest (WI) in a shut-in gas well flow tested at an initial rate (IP) of 465 MCFD. The Operator recently advised 2021877 Ontario Inc. that it intends to commence construction of gas treatment facilities and a sales pipeline to place the well on stream.
In addition to the producing and non-producing lands, the Assets include ownership of over 2,000 kilometers of seismic data and extensive aeromagnetic and gravity survey data covering oil and gas exploration fairways in Lambton, Kent and Essex Counties, Ontario.
The Company will continue to pursue strategies to create a solid foundation for growth in shareholder value. It is presently reviewing additional opportunities for participation with 2021877 Ontario Inc. in the acquisition of petroleum and natural gas assets within southwestern Ontario.
Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. Information on the factors which could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
SOURCE: Biogenerics Inc.
Biogenerics Limited
Paul Smith
905-481-2533
Fooled you all on this relic
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