CALGARY, Aug. 29, 2013 /CNW/ – First Mountain Exploration Ltd. (“First Mountain” or the “Company“) (TSX Venture: FMX) is pleased to announce that it has closed the acquisition (the “Acquisition“) of an additional 35% interest in certain oil and gas producing assets in the Atlee Buffalo area of Alberta (the “Atlee Buffalo Assets“) from a private Company for cash consideration of $280,000, before closing adjustments. After completion of the Acquisition, First Mountain’s total working interest in the Atlee Buffalo Assets increased to 85%. The effective date of the Acquisition is September 1, 2013.
The Company’s 85% operated working interest in the Atlee Buffalo Assets consists of two producing wells and 1,120 gross acres of land. The Atlee Buffalo Assets are currently producing approximately 22 barrels of oil per day gross and provide First Mountain with seven to ten horizontal development drilling locations. The Company is currently proceeding to license two horizontal wells, the first of which the Company anticipates drilling late in 2013 or early in 2014.
First Mountain is also pleased to announce that it has finalized the terms and conditions of a non-brokered equity private placement (the “Offering“). The Offering will consist of the issuance of up to 10,000,000 common shares (the “Common Shares“) of the Corporation at a price of $0.08 per Common Share and up to 10,000,000 common shares of the Corporation issued on a flow-through basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares“) at a price of $0.10 per Flow-Through Share for aggregate gross proceeds up to $1,800,000.
The net proceeds of the Offering shall be primarily used for the Company’s exploration and development, including the development drilling on the Atlee Buffalo Assets.
Closing of the Offering is expected to occur on or about September 30, 2013 and is subject to certain conditions including, but not limited to, necessary regulatory approvals, including the approval of the TSX Venture Exchange Inc.
The Company may pay finders’ fees in cash of up to 8% of the gross proceeds raised pursuant to the Offering to eligible persons in accordance with applicable laws.
On August 23, 2013, First Mountain filed on SEDAR its condensed interim financial statements (“Financial Statements“) and related management’s discussion and analysis (“MD&A“) for the three and six months ended June 30, 2013. The condensed interim Financial Statements and MD&A are available for review at www.sedar.com.
Neither the TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
Not for distribution to U.S. news wire services or dissemination in the United States.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning the identification of 7 to 10 horizontal drilling locations and receipt of regulatory approval in connection with the Offering.
Although First Mountain believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because First Mountain can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on First Mountain’s future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and First Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE First Mountain Exploration Ltd.
For further information:
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: (403) 453-2266