County Line Energy Corp Signs Letter of Intent on Significant Montana Drilling Program
14 Mars 2008 - 12:29AM
Business Wire
Harry Bygdnes, President of County Line Energy (Pink Sheets:CYLC),
announces that the company has signed a letter of intent with
Energy Dynamics Corporation (EDC) on two significant oil properties
in Dawson County in east Montana. The company will conduct a 45 day
due diligence program. The properties in question consist of the
following: � #1 ROTH WELL 160 acre lease parcel at a 74% revenue
interest to EDC Drilled to production in 1994 Tested successfully
at 200 BOPD (barrels of oil per day) Shut in due to high
concentration of H2S (hydrogen sulphide gas) Excellent re-entry
target due to currently available wellhead equipment (Amine Unit)
to separate and process H2S. � #1 TITAN STATE WELL 640 acre lease
parcel at 74% revenue interest to EDC Drilled to production in 1984
Tested successfully in excess of 200 BOPD (barrels of oil per day)
Shut in due to high concentrations of H2S gas Excellent re-entry
target due to availability of Amine Unit In addition there are
three offset well sites on the Titan Lease (new drills) which may
be required to have locations determined by a small seismic
program. The wells have been drilled to a depth of 10,000 feet and
produced from a zone referred to as the Duperow Formation. The
estimated work over cost for each well is $ 1,100,000. Estimated
recoverable reserves for each well are 700,000 barrels of oil over
a ten year life span. It is the intention of County Line Energy to
provide 100% of the working capital to initiate the re-entry of the
#1 Roth and #1 Titan wells. The company will earn an 85% payback of
revenue until fully paid back reverting to a 43% net working
interest after payout. The drilling cost and timing for the offset
wells will be determined after more comprehensive geological and
geophysical study. Signed on behalf of the Board of Directors
CORPORATE WEBSITE www.countylineenergy.com Note: This News Release
may contain certain "forward-looking statements" within the meaning
of the United States Securities Exchange act of 1934, as amended.
All statements, other than statements of historical fact, included
in this release, including, without limitation, statements
regarding potential oil or gas production and reserves, exploration
results, and future plans and objectives of County Line Energy
Corp., are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future could
differ materially form those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectation are disclosed under the
heading "Risk Factors" and elsewhere in documents filed from time
to time with the United States Securities and Exchange Commission
and other regulatory authorities.
County Line Energy (PK) (USOTC:CYLC)
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