Statement re bought deal financing
November 10 2004 - 10:06AM
UK Regulatory
First Calgary Petroleums Ltd. announces bought deal financing and
operational update
TSX: FCP LSE: FPL
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Nov. 10 /CNW/ - First Calgary Petroleums Ltd ("FCP" or the
"Company") today announces a CDN$86.76 million bought deal financing and also
an update on its operations and activities on Block 405b and Block 406a in
Algeria, including the recent testing results from LES-1 and initial results
from the drilling of LEW-1.
Bought Deal Financing
The Company is pleased to announce that it has entered an agreement with
Canaccord Capital Corporation, under which Canaccord has agreed to purchase
for resale to the public, on a bought deal basis, 6,000,000 Common Shares of
FCP at a price of CDN $14.46 ( pnds stlg 6.50) per share, resulting in gross
proceeds of approximately CDN $86,760,000 ( pnds stlg 39,000,000).
This transaction is subject to certain conditions, including normal
regulatory approvals. The Common Shares will be offered in certain provinces
of Canadaby way of short form prospectus and on a private placement basis
elsewhere. Closing is anticipated to occur on or about December 2, 2004.
Net proceeds of the offering will be used for exploration expenditures on
oil and natural gas properties in the Republic of Algeria in which the Company
holds an interest and for working capital purposes.
Operational update
LES-1 Exploration Well Testing Results
--------------------------------------
Production testing of the LES-1 well has resulted in a successful test of
oil, gas and condensate of 21,105 barrels of oil equivalent per day (boe/d),
comprised of 13,515 barrels of light oil per day (bbls/d), 30.9 million cubic
feet of gas per day (mmcf/d) and 2,427 barrels of condensate per day (bbls/d),
normalized to flowing pressures(1)(2) of 2,000 psi. Rates were as follows:
---------------------------------------------------------------
Test Conditions Normalized Rates(1)
-------------------------------------------------------------------------
Gas FWHP Choke Gas Condensate Oil Gas Condensate Total
Interval Psi 64th MMcf/d BBLS/D BBLS/D MMcf/d BBLS/D BOE/D(3)
-------------------------------------------------------------------------
Siegenian
F6-2
Lower 2,642 32 8.9 1,511 - 12.1 2,054 4,077
-------------------------------------------------------------------------
Siegenian
F6-2
Upper 251 44 1.5 470 - 1.2 373 580
-------------------------------------------------------------------------
Sub-Total 13.3 2,427 4,657
---------------------------------------------------------------
Test Conditions Normalized Rates(2)
-------------------------------------------------------------------------
Oil FBHP Choke Oil Gas Oil Gas Condensate Total
Interval Psi 64th BBLS/D MMcf/d BBLS/D MMcf/d BBLS/D BOE/D(3)
-------------------------------------------------------------------------
Siegenian
F6-1B
Lower 5,761 32 3,601 4.7 13,515 17.6 - 16,448
-------------------------------------------------------------------------
Sub-Total 13,515 17.6 - 16,448
-----------------------------------
TOTAL 13,515 30.9 2,427 21,105
-----------------------------------
FWHP - Flowing Wellhead Pressure
FBHP - Flowing Bottom Hole Pressure
(1) Rate normalized to a FWHP of 2,000 psi
(2) Rate normalized to a FBHP of 2,000 psi
(3) Using a conversion ratio of 6 thousand cubic feet of gas to 1 barrel
of oil equivalent
This is the most southerly well drilled so far on Block 405b and has
tested the highest rate of liquids from a single zone on the Ledjmet Block to
date.
LEW-1 Initial Drilling Results
------------------------------
The LEW-1 exploration well is the most westerly exploration well drilled
so far on Block 405b. It was drilled to a depth of 4,510 metres and is located
approximately 7 km northwest of the recently drilled and cased MZLS-1 well.
Wireline logging results indicate the presence of 67 metres of net hydrocarbon
pay over multiple geological horizons. Production testing is expected to
commence later this month.
Activity Overview
-----------------
BLOCK 405b
The following table summarizes the ten wells that have been drilled to
date on Block 405b. All ten wells have successfully identified hydrocarbons
(gas, condensate or oil) through production testing and/or logging. The
locations of the wells range from the MLE Field on the eastern side of the
Block to the LEW-1 well in the central portion of the Block. Readers are
referred to the map of Block 405b which is available on the Company's website,
www.fcpl.ca.
-----------------------------------------
Normalized Rates(1),(2)
-----------------------------------------
Gas Condensate Oil Total
Well (mmcfd) (bbls/d) (bbls/d) (BOE/d) Category Status
-------------------------------------------------------------------------
MLE-1 31 784 6,019 Exploration Cased Gas and
Condensate
-------------------------------------------------------------------------
MLE-2 192 13,098 45,151 Appraisal Cased Gas and
Condensate
-------------------------------------------------------------------------
MLE-3 127 3,643 24,743 Appraisal Cased Gas and
Condensate
-------------------------------------------------------------------------
MLE-4 23 1,223 5,090 Appraisal Cased Gas and
Condensate
-------------------------------------------------------------------------
MLE-5 42 1,596 8,546 Appraisal Cased Gas and
Condensate
-------------------------------------------------------------------------
LEC-1 105 2,602 20,059 Exploration Cased Gas and
Condensate
-------------------------------------------------------------------------
LES-1 31 2,427 13,515 21,105 Exploration Cased Oil, Gas
and Condensate
-------------------------------------------------------------------------
MZLN-1 214 9,863 45,596 Exploration Cased Gas and
Condensate well
-------------------------------------------------------------------------
MZLS-1 Exploration Production testing
expected to
commence in
November, 2004
-------------------------------------------------------------------------
LEW-1 Exploration Production testing
expected to
commence in
December, 2004
-------------------------------------------------------------------------
---------------------------------
TOTALS 765 35,236 13,515 176,309
---------------------------------
FWHP - Flowing Wellhead Pressure
FBHP - Flowing Bottom Hole Pressure
(1) Rate normalized to a FWHP of 2,000 psi
(2) Rate normalized to a FBHP of 2,000 psi
(3) Using a conversion ratio of 6 thousand cubic feet of gas to 1 barrel
of oil equivalent
(4) Test rates are from multiple zones.
The MLE appraisal wells drilled by FCP on the east side of Block 405b
confirmed the presence of significant reserves within the MLE Gas and
Condensate Field. Since then we have drilled a series of adjacent but
independent hydrocarbon-bearing structural segments, extending over 32 km from
the MLE Field west to the LEW-1 well.
The Company has now drilled four major structural segments on Block 405b
and the geological and geophysical data indicate the presence of additional
drillable structural segments west and northwest of LEW-1.
FCP also advises that drilling has commenced on the LES-2 appraisal well,
located 2.7 km southeast of the LES-1 well. Initial logging results are
expected by the end of December.
BLOCK 406a
Fieldwork continues on the 613 km2 3D seismic survey, initiated following
the results of the ZCH-1 discovery earlier in 2004, and is expected to be
completed in January 2005. The Company's 2005 drilling programme will include
at least two exploration wells on this Block.
First Calgary Petroleums Ltd. is an oil and gas exploration company
actively engaged in exploration and development activities in Algeria. The
Company's common shares trade on the Toronto Stock Exchange in Canada (FCP)
and on the AIM market of the London Stock Exchange in the UK (FPL).
This news release includes statements about expected future events and
financial results that are forward looking in nature and subject to risks and
uncertainties. FCP cautions that actual performance may be affected by a
number of factors, many of which are beyond its control. Future events and
results may vary substantially from what First Calgary Petroleums Ltd.
currently foresees.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The Common
Shares will not be and have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements.
For further information: contact: Richard G. Anderson, President and
CEO, First Calgary Petroleums Ltd., Tel: (403) 264-6697, Website: www.fcpl.ca;
European contacts: Jim Joseph, College Hill, Tel: +44 (0) 207 457 2020;
Carina Corbett, 4C Communications Ltd., Tel: +44 (0) 207 907 4761
(FCP.)
END
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