Celtic Wraps Up Grande Cache Purchase

Acquired gas assets at Grande Cache, AB adjacent to Celtic's core area at Resthaven on 61,000 net acres (33,000 net undeveloped), gaining 2,500 BOE/d, 4.7 MMBOE.

Celtic Exploration Ltd., Calgary, (Toronto: CLT) has closed its acquisition of gas assets at Grande Cache, Alberta, from an undisclosed seller for C$50 million in cash.

The assets are adjacent to Celtic's core area at Resthaven. The acquisition includes approximately 61,000 net acres (95 sections) of lands, of which approximately 33,000 net acres (51 sections) are undeveloped. The majority of the lands contain Cretaceous rights, including the Cardium, Dunvegan, Cadotte, Falher, Bluesky, Gething Cadomin and Nikanassin formations.

Production is approximately 15 million cubic feet per day or 2,500 barrels equivalent per day, of which approximately 50% is operated. Proved producing reserves as of March 1 were 4.7 million barrels equivalent and proved and probable reserves of 6.1 million barrels equivalent.

Celtic has identified several horizontal drilling opportunities on the Grande Cache asset base that has previously been developed using only vertical wells. The assets are complementary to Celtic's land holdings at Resthaven where the company has recently completed drilling a horizontal well in the Cretaceous Falher formation.

In addition, the company acquired a 30% working interest in the Copton gas plant at 11-25-059-09W6; a 7.0% working interest in the Narraway gas plant at 10-08-062-10W6; and interests in various compressors and gas gathering pipelines.