Angle Energy Complements Alberta Holdings With C$115MM Acquisition

To acquire assets in Edson, AB, gaining 6 MMBO reserves, 2,200 BOE/d.

Angle Energy Inc., Calgary, (Toronto: NGL) plans to acquire assets in the Edson area of Alberta complementing its recent purchase of Stonefire Energy Corp. from an unnamed company for C$115 million in cash.

Proved reserves are estimated at 6 million barrels of oil equivalent for an acquisition cost of C$18.43 per proved barrel. The proved reserve life index is 7.5 years.

Production totals 2,200 barrels of oil equivalent per day (80% gas). Pro forma the transaction, Angle will have production of 3,450 barrels of oil equivalent per day in the Edson area.

Angle also gains undeveloped land of 23,385 acres (net), with between 40 and 60 potential horizontal locations.

Angle reports that many of the target formations on the acquired lands and Angle's existing Edson lands will benefit from the recently announced Alberta Crown royalty incentives modifications, which make wells drilled in such formations eligible for the Natural Gas Deep Drilling Program.

The acquisition is expected to close on June 30.

Cormark Securities Inc. was financial advisor to Angle.