Monday, May 11, 2009 1:07:05 PM
Admiral Bay Resources Announces Acquisition of Additional Interest in the Thayer Project in Kansas
Mon May 11, 11:00 AM
http://ca.news.finance.yahoo.com/s/11052009/28/link-f-ccnmatthews-admiral-bay-resources-announces-acquisition-additional-interest-thayer.html
CENTENNIAL, COLORADO--(Marketwire - May 11, 2009) - Admiral Bay Resources, Inc. (TSX VENTURE: ADB.V) announces today it has acquired 280 net acres and three wells adjacent to its Thayer Project for $100,000 (US) from a third party. The wells presently sell into the Thayer gathering system and are capable of producing over 80 MMCFGPD and have one proven undeveloped drilling location based on Company estimates.
Related to its previously announced acquisition of the Thayer Project, the Company has entered into a swap agreement for 60 MMCFG per month with a $5.107 swap price at the Southern Star index beginning June 2009 thru December 2010. The Company also sold calls on 60 MMCFG per month at $8.00 NYMEX from January 2011 thru April 2012. These new hedges combined with the Company's existing costless collar for 60 MMCFG per month with a $5.50 floor and $9.00 ceiling at the Southern Star index that run thru March 2010 cover over 80% of the Company's gross sales proforma for the Thayer Project acquisition and provide a stabilizing effect to the Company's near-term cash flow at prices well in excess of the current spot prices in its market area.
In addition, the company has reduced salaries for all field staff and middle management by 10% and senior management by 20% until the market fundamentals improve.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
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
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
rcarington@admiralbay.com
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