CALGARY, Alberta, February 27, 2019 – Amherst Energy Inc. (“Amherst”)
Amherst today reported that it has been issued a well license for the Amherst HZ Morgan 13-8-52-3W4 horizonal heavy oil well. Amherst is currently building a drilling pad and plans to commence drilling by March 15, 2019.
The well is located at the east end of the Morgan Lloydminster heavy oil pool. It is also situated immediately adjacent to a pad on which seven heavy oil wells were drilled late 2017. These wells produced an average of 70 barrels per day in November 2018.
The company also announces that it has entered into a convertible debenture arrangement with Humboldt Capital Corporation to provide the necessary funding to drill, complete and install the production facility for the Morgan Well. Mr. Lamond, Chairman of Amherst Energy, stated that the recently announced proration scheme enacted by the Alberta government, resulting in higher WCS prices, enabled the financing of this project. Mr. Lamond had submitted briefs to the BOE Report in October and November encouraging the government to restrain production to stabilize the then prevailing unacceptably low heavy oil prices. He also stated a concern that the government may treat this as a short-term emergency measure but hoped that the government would extend the prorationing program, in the interest of all Albertans, until additional pipeline capacity is in place and operating.
Amherst Energy Inc. (“Amherst”) is a private Calgary based oil and gas exploration company.
Robert W. Lamond, Chairman & CEO
Amherst Energy Inc.
Ph: (403) 454-8422
Fax: (403) 452-0934
Donald K. Clark, President & COO
Amherst Energy Inc.
Ph: (403) 452-0447
Fax: (403) 452-0934