2011-05-30-2011-04-28-2011-04-28

Bought op & nonop assets in AB including 3,200 ne acres & CBM & Cardium wells, gaining 25 BOE/d.

Cougar Oil and Gas Canada Inc., Calgary, (OTCBB: COUGF) has closed the acquisition of several operated and nonoperated oil and gas properties in Alberta from an undisclosed private company for an undisclosed price.

Payment for the properties included Cougar assuming the abandonment liability for the properties and forgiving an outstanding accounts receivable from the private company.

The properties include four producing nonoperated coalbed-methane gas wells and associated gathering and production facilities located in central Alberta, three suspended Cardium oil wells in central Alberta, five standing gas wells in central and southern Alberta and 3,200 net acres of mineral rights adjacent to Cougar's oil producing Alexander property.

The coalbed-methane wells feature net production of approximately 25 barrels of oil equivalent per day and the Cardium assets feature potential to reactivate two wells this summer for an estimated net production of 25 barrels of oil per day.

The five gas wells require additional workover and/or tie-in work and will be evaluated for development farmout or divestiture. The mineral rights include all oil and gas rights and will be evaluated for oil production potential.

"We are delighted that this asset acquisition has closed," says,William Tighe, chairman and chief executive of Cougar. "The acquisition did not have a debt or equity cost to the corporation and it had an immediate strategic value. It provides access to a defined Cardium horizontal oil prospect, a profitable CBM natural gas production field with a long reserve life and an undeveloped land base close to our Alexander oil prospect."