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| Promax Reserve Report Update
March 4, 2002, Calgary, Alberta Canada -- Promax Energy Inc. (TSE:PMY) is pleased to update its reserves for the year ending December, 2001. Citadel Engineering Ltd. has prepared an Appraisal Report dated January 28, 2002 and effective January 1, 2002, which includes reserves associated with the 2001-drilling program. Probable reserves are risked at 50% and cash flow values are quoted on an escalated dollar basis using the price forecast provided by the Corporation's lender. APPRAISED INTEREST (Escalated Dollar)
Proved 139
91,084 268,781 91,899
80,057 66,781
Probable 37
91,180 293,272 98,458
83,176 66,023
|
| December 21st, 2001, Calgary, Alberta,
Canada
Promax Energy Inc. (TSE:PMY) is pleased to announce it has completed a private placement (the "Private Placement") of 772,193 flow-through common shares ("Flow-Through Common Shares") at the price of $0.75 per share for gross proceeds of $579,145. The shares will be subject to a four month hold period expiring on April 22, 2001. The gross proceeds of the Private Placement will be used by Promax for the Corporation's 2002 deep well exploratory drilling program in the Cessford area of southeastern Alberta. A review of drilling locations to the Mississippian (60 identified) indicates that the bulk of the Promax 2002 drilling will be "step out" development wells on discoveries made in 2001. The 2001 deep drilling program in Cessford generated approximately 16 MM dollars of CEE of which 5MM dollars was allocated to a flow-through share issue closed in 2000. Promax Energy is a rapidly growing junior oil and gas exploration and production company focusing on natural gas in south eastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons. |
| Promax results of a 7 day production test
ending November 30, 2001
December 3rd, 2001 For the 7 days ended November 30, 2001, the Corporation produced an average of 4142 BOEPD (6:1) peaking at 4450 BOEPD during the period. Of this, 97 percent, or 4018 BOEPD accrued to Promax. The Corporation now owns controlling interests in 164 Mississippian test wells through both drilling (80 since August 2000) and acquisitions. It has further drilled 193 Medicine Hat/ Milk River test wells in the same period and acquired a GORR in another 298 MH/ MR wells. Thirteen Mississippian wells drilled in 2001 remain left to be tied-in with seven into third party facilities and six into Promax facilities. Fewer than half of the Mississippian wells obtained in acquisitions are producing, but all are tied into pipelines and production facilities. All are being evaluated for recompletion in secondary or tertiary horizons with by-passed pay. Twenty six Medicine Hat test wells were drilled throughout the Promax acreage and are being evaluated for tie in and production on 640 acre spacing until downspacing reaches them. Production optimization on acquired properties has included doubling water injection capacity by working over an injection well, replacing propane for PCP pump power with natural gas from a successful Belly River well drilled in 2001 and initiating natural gas production from an acquired horizontal well, all on Promax Jenner properties. Finally, new fracture stimulation technology has been developed which has unlocked significant new production from the Rex, Mclaren and Colony zones in the Mannville horizon, which currently represents over half of the Corporation's production. Of key importance is a new fracture stimulation technique that may more than double the stabilized Medicine Hat/ Milk River productive capacity. Promax Energy is a rapidly growing
junior oil and gas exploration and production company focusing
on natural gas in south eastern Alberta. It is well positioned to
play a key role in the development of 500,000 acres of shallow
gas in the Cessford area of Alberta including platform production
from the Medicine Hat/Milk River zones and potential higher
productivity from up to 15 other horizons.
|
| Promax Announces Approval of Borrowing Base Increase
to $45,000,000 USD ($70,000,000 CAD)
September 5th, 2001, Calgary, Alberta Canada Promax Energy Inc. (TSE:PMY) is pleased to announce an increase of its borrowing base from $22,000,000 USD ($34,000,000 CAD) to $45,000,000 USD ($70,000,000) from Shell Capital Inc. effective August 31, 2001. This increase was based on the normal course borrowing base review planned for August, 2001 and included a review of production volumes, reserves, and the number of wells drilled, tied-in and producing. Promax will use the additional funds to continue its development program in 2002 and 2003 in its core area of Cessford, Alberta. As at August 31, 2001 Promax has drilled 156 of its 175 planned Medicine Hat/Milk River wells of which 103 were producing and 27 are completed waiting tie-in. Promax also had 41 of the 50 planned Paleo wells drilled with 12 producing and 7 completed waiting tie-in. Promax Energy is a rapidly growing junior oil and gas exploration and production company focusing on natural gas in south eastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons.
|
| PROMAX DRILLING AND RESERVE REPORT UPDATE
August 1st, 2001, Calgary, Alberta Canada – Promax Energy
Inc. (TSE:PMY) is pleased to update its drilling progress and
To date in 2001, the Corporation has drilled and cased
thirty-four (34) Paleozoic wells, and one hundred and twenty-two (122)
Citadel Engineering Ltd. has prepared an Appraisal Report
dated July 31, 2001 and effective July 01, 2001, which
APPRAISED INTEREST (Escalated Dollar) |
Medicine Hat field
The Saskatchewan portion produces more than 200 mmscf
per day, of which Fletcher Challenge Energy’s share is more than 25 per
cent. Production from the Alberta portion of the Medicine Hat field exceeds
one bcf per day.
Hatton
Twp.18 Rge.26-27W3M 179 wells, 4.7 mmcfgpd
20.7 Bcf reserves 2.5 Bcf producible reserves
Cessford area of South Eastern Alberta
| drilled and cased in an average of 3.6 days for an average cost of $130,000 |
54 MILLION DOLLAR CAPITAL BUDGET FOR 2001
ProMax Energy
Announces Completed Private Placement of $3MM
CALGARY, Sept. 26 /CNW/ - (CDNX:PMY) The Board of Directors
of Promax Energy Inc. (the "Corporation") is pleased to announce that the
Corporation has fully subscribed its September, 2000 Flow-Through Private
Placement. The fully subscribed Private Placement provides capital in the
amount of $3,000,000 by issuing 5,172,414 common shares in the capital
of the Corporation, at $0.58 per share. The shares will be subject to a
four-month hold period expiring on January 25, 2001.
This brings the total to $8,081,239 in funds raised by
the corporation through private placements since March, 2000. Funds were
used to purchase certain working interests and gross over-riding Royalties
($2,425,797), to re-activate its pipeline facilities ($1,007,104), and
to drill up to 40 new wells ($4,648,338).
Fees in the amount of $56,150
were paid from working capital, to certain investment dealers, to assist
in the placement of the $3,000,000.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing primarily on natural gas in the Cessford area of South Eastern Alberta. It currently owns and/or controls, 196 sections of oil and gas leases with high working interest, operates over 100 km of gas gathering system, and has reprocessed over 1800 km of high quality seismic. It is also testing, evaluating, and tying-in up to 35 suspended gas wells adjacent to its pipeline facilities. Promax is well positioned to play a key role in the development of an AMI (Area of Mutual Interest) covering over 400,000 acres in its area of focus.
Promax Energy Inc., Calgary, said Wednesday it spudded its first well Aug. 14 2000, in the Cessford area of southeastern Alberta, where it plans to drill up to 23 wells including 15 Nisku tests and 8 Medicine Hat/Milk River tests. As part of its drilling program for 2000, potential horizons include Victoria A & B, Belly River, Medicine Hat, Milk River, Basal Colorado, Viking A & B, 2nd White Specs, Sunburst, Colony, Basal Quartz, Glauconite, McLaren, Detrital, and Bakken. Promax Energy also has drilled two follow-up wells to the Glauconite channel discovery made in 1998 and placed onstream in June.
Initial results of its 2000 drilling program in Cessford,
Alberta.
To date, the Corporation has drilled and cased 3 wells
with significant multizone gas potential and is close to total depth on
the 4th exploratory well. The wells were drilled and cased in an average
of 3.6 days for an average cost of $130,000, significantly reducing the
cost structure in the area. Promax plans to drill up to 23 wells within
the current Cessford drilling program.
Of the remaining 27 wells in the 2000 drilling program, 12 will test
the Medicine Hat/Milk River formation potential, at a drilled and cased
cost of approximately one-half of the above average.
Historically, the Medicine Hat/Milk River formations have produced
at lower rates, but with a reserve life index of over 20 years. The 12
Medicine Hat/Milk River wells are expected to define the significant shallow
gas potential in Promax's core area of Cessford, Alberta.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing primarily on natural gas in the Cessford area of South Eastern Alberta. It currently owns and/or controls, 148 sections of oil and gas leases with high working interest, operates over 100 km of gas gathering system, and has reprocessed over 1800 km of high quality seismic. It is also testing, evaluating, and tying-in up to 35 suspended gas wells adjacent to its pipeline facilities. Promax is well positioned to play a key role in the development of an AMI (Area of Mutual Interest) covering over 400,000 acres in its area of focus.
Canada's National Energy Board on Monday has received
two applications from ProGas Ltd. for natural gas export licenses.
One application, filed jointly with RDO Foods Co., is
for a long-term license to export gas, while the second application is
to amend an existing gas export license. ProGas and RDO applied for
a license to export gas for 8 years beginning Nov. 1, 2000, to RDO for
its potato processing plant in Grand Forks, ND. Gas would be exported through
Emerson, Man., at rate of 1.4 MMcfd.
The second application asks to extend an existing contract from Nov. 1, 2000, to Oct. 31, 2008, and increase the quantity of gas that may be exported during the term of the license from 21.9 bcf to 109.6 bcf. Under the existing license, ProGas exports gas near Monchy, Sask., to ProGas USA, which then resells it in markets in the US Midwest. All of the gas would be supplied from producers in Alberta, British Columbia, and Saskatchewan under contracts with ProGas.
Promax Energy Inc., Calgary, said it has finished building the final phase of its mainline gas gathering system in the Cessford area of Alberta. Ten wells are producing to the system. Promax plans to add eight more suspended wells by Sept. 30, and hopes to have 35 wells producing to the system by year's end.
PROMAX ANNOUNCES FACILITIES EXPANSION
October 3, 2000
On behalf of the Board of Directors, Promax Energy Inc.
(the "Corporation") is pleased to announce the expansion of its producing
facilities to accommodate up to 20.00 MMCF/D from its properties in Cessford,
Alberta.
The Corporation has added 32 km of tie-ins to its 44 Km of Phase I, II, and III gathering system infrastructure and is expanding capacity by adding 12.2 km of 169 mm loop and 2.2 km of 219 mm loop to eliminate excessive pressure drops. In addition Promax has also installed a 450 BHP booster compressor at the east end of Phase III in order to maximize deliveries from its shallow gas wells in the area and is installing a 750 BHP booster compressor at its existing compressor site at 6-14-24-10W4. Both units were purchased and refurbished for a total of $527.00/BHP, or approximately one-half of new costs. Finally, purchase orders are being issued to install an additional 1100 BHP compressor, dehydration tower and choke plant also at 6-14-24-10W4. Together with the underutilized third party compression and dehydration facility in the area, the combined system capacity will be in excess of 20.0 MMCF/D.
Both booster compressors will be installed by the end of the first week of October, 2000. Main line looping and installation of the new compressor and dehydration unit are scheduled for completion by December 1, 2000.
Total facilities expenditures are budgeted to be in the order of $7,000,000
for which term financing has been arranged.
December 18, 2000 News Release
Investor Relations
FOR IMMEDIATE RELEASE CDNX:PMY
CALGARY, ALBERTA December 18, 2000
PROMAX ANNOUNCES 2000 DRILLING RESULTS
Promax Energy Inc. announces the completion and results
of its 2000 drilling program in Cessford, Alberta.
As at December 18, 2000, Promax is pleased to announce
that it has achieved a 100 percent success rate and has cased and iscompleting
all 43 wells in its 2000 drilling program in Cessford, Alberta. 26 wells
were drilled to the Banff and 17 to the MedicineHat. All of the wells indicate
potential commercial gas production from multiple horizons. A summary of
the potential producinghorizons is set out below:
HORIZON BANFF
TEST WELLS
MEDICINE HAT TEST WELLS TOTAL
Belly River
16
16
22
Med Hat/Milk River 26
17
43
Viking
24
-
24
Mannville
22
-
22
Lower Mannville
13
-
13
Banff
3
-
3
Potential Productive 104 23 127
NOTES:
1.11 Medicine Hat test wells were drilled
adjacent to existing Medicine Hat/Milk River production.
2.6 Medicine Hat test wells were drilled
throughout Promax acreage to evaluate development potential.
3.9 of the Banff test wells have been tied-in
and are producing with 15 more scheduled for tie-in by mid-January, 2001.
4.5 separate channel systems in the Glaucenite,
McLaren, Rex, and Colony zones have been identified by the program and
are being mapped for further development.
5.Test rates of 200 MCF/D to 6,000 MCF/D
have been achieved in the Banff test wells completed to date.
6.Test rates of 30 MCF/D to 150 MCF/D have
been achieved in the Medicine Hat test wells completed to date.
7.All producing wells on stream are being
produced at rates designed to maximize reserve life.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing primarily on natural gas in the Cessfordarea of South Eastern Alberta. It currently owns and/or controls, 250 sections of oil and gas leases with high working interest,operates over 115 km of gas gathering system, and has reprocessed over 1800 km of high quality seismic. It is also producingand/or testing, evaluating, and tying-in up to 35 suspended gas wells and 24 of 43 newly drilled wells on, or adjacent to, its pipelinefacilities. Promax is well positioned to play a key role in the development of an AMI (Area of Mutual Interest) covering over 400,000acres in its area of focus.
For additional information please contact Mr. Alexander
T. Lemmens, President or Mr. Randy Clark, Vice President Finance at (403)
261-8880, Fax (403) 261-8818 or access our website at www.promaxenergy.com
The Canadian Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release
December 19, 2000
PROMAX ANNOUNCES FACILITIES EXPANSION
On behalf of the Board of Directors, Promax Energy Inc.
(the "Corporation") is pleased to announce the expansion of its producing
facilities in Cessford, Alberta.
As of today’s date Promax has initiated start-up of its
own gas processing plant at 6-14-24-10 W4M. The station consists of a 20
Mmcf/d inlet separator, 10 Mmcf/d compressor, dehydrator,
and hydrocarbon dewpoint control unit. The site is designed so that an
additional three 10 Mmcf/d compressor dehydration trains
can be added with minimal disruption and downtime. The second stage
expansion of an additional 10 Mmcf/d is scheduled for
completion by March 1, 2001, giving Promax the capacity for 20 Mmcf/d
through its own facilities and 5 Mmcf/d through a third
party facility. Gas sales can be made directly by Promax to the
Trans-Canada Pipelines (formerly Nova); through this
facility, through the third party processing facility, or through both.
This brings
to $8,300,000 million dollars in funds invested by Promax
in gathering and processing infrastructure in 2000.
With the completion of this portion of the Cessford plant,
net production is forecasted to increase from 700 BOEPD to 1650 BOEPD.
This increase in production levels should result in exit
cash flow annualized at approximately $0.50 per share.
Promax Energy Inc. is a junior oil and gas exploration
and production company focusing primarily on natural gas in the Cessford
area of South Eastern Alberta. It currently owns and/or
controls, 250 sections of oil and gas leases with high working interest,
operates over 115 km of gas gathering system, 2200 BHP
of compression, and has reprocessed over 1800 km of high quality
seismic. It is also producing and/or testing, evaluating,
and tying-in up to 35 suspended gas wells and 24 of 43 newly drilled wells
on, or adjacent to, its pipeline facilities. Promax is
well positioned to play a key role in the development of an AMI (Area of
Mutual
Interest) covering over 400,000 acres in its area of
focus.
For additional information please contact Mr. Alexander
T. Lemmens, President or Mr. Randy Clark, Vice President Finance at (403)
261-8880, Fax (403) 261-8818 or on our website at www.promaxenergy.com
December 20, 2000
SECOND CLOSING OF PRIVATE PLACEMENT FOR ADDITIONAL PROCEEDS OF $800,000
Promax Energy Inc. (the "Corporation") is pleased to announce
it has completed the second closing of its November, 2000 private
placement (the "Private Placement") of 695,652 flow-through
common shares ("Flow-Through Common Shares") at the price of $1.15
per share for gross proceeds of $800,000. The completion
of the second closing brings the total of the November private placement
to 5,060,923 flow-through common shares at a price of
$1.15 for gross proceeds of $5,820,061. The shares will be subject to a
twelve month hold period under Ontario securities legislation
expiring on December 20, 2001. This brings the total to $11,400,000
raised by the Corporation through private placements
in 2000.
Salman Partners Inc. acted as agent of the Corporation
in respect of both closings and in respect of this second closing received
a
commission in the amount of $48,000 in consideration
of its services.
Promax Energy Inc. is a junior oil and gas exploration
and production company focusing primarily on natural gas in the Cessford
area of South Eastern Alberta. It currently owns and/or
controls, 250 sections of oil and gas leases with high working interest,
operates over 115 km of gas gathering system, 2200 BHP
of compression, and has reprocessed over 1800 km of high quality
seismic. It is also producing and/or testing, evaluating,
and tying-in up to 35 suspended gas wells and 24 of 43 newly drilled wells
on, or adjacent to, its pipeline facilities. Promax is
well positioned to play a key role in the development of an AMI (Area of
Mutual
Interest) covering over 400,000 acres in its area of
focus.
January 23, 2001
PROMAX ANNOUNCES RESULTS OF MEDICINE HAT/MILK RIVER COMPLETION PROGRAM AND PLANS FOR 2001
Promax Energy Inc. (the "Corporation") is pleased to announce that it has completed the Medicine Hat/Milk River (MH/MR) test wells drilled in 2000.
In 2000, the Corporation drilled and cased 17 MH/MR test wells in its Cessford field. 11 development wells were drilled adjacent to existing MH/MR production in Township 24-10W4. In addition, 6 wells were drilled as exploratory test wells throughout the balance of Promax acreage in 6 townships east of existing production.
The wells were drilled to below the Medicine Hat formation and have now been perforated, fracture stimulated, and flow tested. Bottom hole pressures have varied from 4200 kpa near existing production to 4850 kpa at the eastern edge of the properties. Production testing has indicated AOFP (Absolute Open Flow Potential) of 180 MCF/D based on flow rates of 120 MCF/D at 2200 kpa.
MH/MR wells in the area have averaged 100MMCF cumulative production to date with the best wells averaging 157 MMCF. Reserve life is estimated to be between 20 and 30 years. Stabilized flow rates, after the first year, are between 30 and 70 MCF/D declining at 5-7% per year. Wells are currently drilled on 160 acre spacing (4 per section) with potential for down spacing to 80 acres. Reserves for these blanket sands will therefore be 0.60 to 1.2 BCF/section, resulting in potential additional reserves for the Corporation of 100 to 200 BCF on its existing land base.
Plans For 2001
Based on the above, the Corporation intends to drill up to 175 MH/MR wells in 2001. Including gas gathering, compression, and dehydration the 175 well MH/MR program will require a capital expenditure of approximately $24,500,000 ($18,400,000 net). Upon completion and tie-in these wells will add 2000 to 3000 BOEPD (1500-2250 net) of production by year-end.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing on natural gas in SE Alberta. It is well positioned to play a key role in the development of 250,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River and potential production from up to 15 other horizons.
For additional information please contact Mr. Alexander T. Lemmens, President or Mr. Randy Clark, Vice President Finance at (403) 261-8880, Fax (403) 261-8818 or on our website at www.promaxenergy.com
The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.
PROMAX ENERGY INC. ANNOUNCES54
MILLION DOLLAR CAPITAL BUDGET FOR 2001
JANUARY 31, 2001
Promax Energy Inc. ("Promax" or the "Corporation") is
pleased to announce that it has forecast a capital expenditure budget for
2001 in the amount of $54,000,000. Funds will be provided from equity issued
in 2000, cash flow, new joint venture participation, and credit facilities
available from its principal and facilities lenders.
DRILLING
The Corporation intends to spend $31,000,000 drilling 175 Medicine Hat test wells and 50 Banff test wells, all on its properties in SE Alberta. Upon completion the this program, Promax will have developed only 20 percent of its Medicine Hat/Milk River and 30 percent of the other cretaceous potential under the lands it currently controls in its Area of Mutual Interest.
FACILITIES
The Corporation intends to spend $16,700,000 to install an additional 4300 HP of field compression, 30 Mmcf/d of processing and 200km of steel and PVC gathering system.
LAND & SEISMIC
The Corporation intends to complete its geoscience study of the Cessford area by acquiring, re-processing, and shooting seismic as well as developing the geological model for all zones. Based on this, Promax hopes to increase its existing base in its Area of Mutual Interest by some 30 percent. Expenditures for data and land acquisitions are expected to be $6,200,000.
SUMMARY
The Medicine Hat/Milk River drilling program will develop some 44 of 230 sections adjacent to existing production. This, the facilities planned, and the anticipated success of the other cretaceous test wells should result in moving a substantial portion of the Corporation’s reserves from undeveloped and probable to proven producing.
The above is based on natural gas prices averaging $6.00/MSCF at AECO for 2001 and access to sufficient capital for the development drilling program identified.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing on natural gas in SE Alberta. It is well positioned to play a key role in the development of 250,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River and potential production from up to 15 other zones.
For additional information please contact Mr. Alexander T. Lemmens, President or Mr. Randy Clark, Vice President Finance At (403) 261-8880, Fax (403) 261-8818 or on our website at www.promaxenergy.com
February 28, 2001
PROMAX ENERGY INC. ANNOUNCES A NORMAL COURSE ISSUER BID
Promax Energy Inc. (the "Corporation"), announces that on March 1, 2001 it will commence a normal course issuer bid (the "Bid"). The Corporation intends to acquire up to 2,273,430 (approximately 5%) of its issued outstanding common shares, being the maximum number of shares it is permitted to acquire pursuant to a normal course issuer bid under applicable securities legislation. The issuer bid will expire on the earlier of March 1, 2002 and the date upon which the Corporation acquires the maximum number of common shares subject to the Bid.
Under the Bid, the Corporation will acquire, from time to time, its common shares for cash through the facilities of the Canadian Venture Exchange Inc. The Corporation has established a trading account with a member firm of the Canadian Venture Exchange Inc. for this purpose. For any particular trade, the Corporation will not purchase common shares at a price higher than the price of the immediately preceding trade on the open market by independent parties.
In the view of the board of directors of the Corporation, the common shares of the Corporation are undervalued on the market and purchases of the Corporation’s common shares at or near the current market price would be advantageous to shareholders of the Corporation.
No director or senior officer intends to accept the Bid and, to the best knowledge, information and belief of the Corporation, after reasonable inquiry, no: (i) associate of a director or senior officer of the Corporation, (ii) person holding 10% or more of any class of equity security of the Corporation or (iii) person acting jointly or in concert with the Corporation, intends to accept the Bid.
The Corporation retained ScotiaMcLeod, a member firm of the Canadian Venture Exchange, to conduct purchases under the Bid.
Management is not aware of any material changes in the business or affairs of the Corporation.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing on natural gas in SE Alberta. It is well positioned to play a key role in the development of 250,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River and potential production from up to 15 other zones.
For additional information please contact Mr. Alexander T. Lemmens, President or Mr. Randy Clark, Vice President Finance At (403) 261-8880, Fax (403) 261-8818 or on our website at www.promaxenergy.com
Please find enclosed a second news release issued by Promax
Energy through Canada News Wire today. Should you have any
questions or require additional information please do
not hesitate to contact me at (403) 261-8880.
David Todoruk
Investor Relations
FOR IMMEDIATE RELEASE
CDNX-PMY
CALGARY, ALBERTA
February 28, 2001
PROMAX ENERGY INC. ANNOUNCES CLOSING OF $8,000,000 FACILITIES
FINANCING THROUGH ENSTAR FINANCIAL
CORPORATION
The Board of Directors for Promax Energy Inc. (the "Corporation"),
is pleased to announce the completion of a facilities sale and
concurrent long-term processing agreement in the amount
of $8,000,000. The sale includes certain compressor facilities, gathering
lines and associated production equipment in Promax’s
core area of Cessford, Alberta.
The term of the processing agreement is 60 months with
a monthly compression and gathering fee. Promax may purchase the
equipment at the end of the initial term for $2,000,000,
or re-negotiate a new agreement for an additional term. Promax, by
agreement, will continue as operator of the facilities
The $8,000,000 from the sale of the facilities will be
used to help fund the 2001 drilling program of 175 Medicine Hat test wells
and
50 Banff test wells scheduled to commence in March 2001.
Promax Energy Inc. is a junior oil and gas exploration
and production company focusing on natural gas in SE Alberta. It is well
positioned to play a key role in the development of 250,000
acres of shallow gas, including platform production from the Medicine
Hat/Milk River and potential production from up to 15
other zones.
PROMAX ENERGY INC. AQUIRES BALANCE OF WORKING INTEREST IN CESSFORD
Promax Energy Inc. (the "Corporation"), is pleased to
announce it has finanlized the purchase of the
remaining working interests in its Cessford Properties.
The purchase agreements allow Promax to buy
the last 6.0% working interest, bringing Promax’s total
working interest to 100% in the AMI (Area of
Mutual Interest) with its joint venture partners in the
Cessford area.
Continuing its efforts to maximize shareholder value and
streamline operations, Promax Energy now
enters its 2001 drilling program with a 100% working
interest.
Promax Energy Inc. is a junior oil and gas exploration
and production company focusing on natural gas
in SE Alberta. It is well positioned to play a key role
in the development of 250,000 acres of shallow
gas, including platform production from the Medicine
Hat/Milk River and potential production from up to
15 other zones.
PROMAX ENERGY INC. COMPLETES FARM-IN AGREEMENT WITH STEALTH VENTURES INC.
Promax Energy Inc. (the "Corporation"), is pleased to announce it has reached an agreement with Stealth Ventures Inc. ("Stealth"), subject to the execution of formal documents, for a multi-well farm-in in its core area of Cessford, Alberta.
Under the terms of the agreement, Promax will drill a total of 8 wells with 4 being drilled by December 31, 2001, and 4 wells by year end of 2002. Each of the 8 wells will be subject to a 12.5% Gross Overriding Royalty and convertible to a 40% working interest at payout. Upon completion of drilling the 8 wells, Promax will earn 100% working interest to payout on the drilled lands and 60% in the balance of 21 Sections currently held by Stealth and their partners.
In addition Promax has also purchased all of Stealth’s interest in the existing pipelines within an A.M.I. (Area of Mutual Interest) with Stealth and 60% of their interest in existing downhole and surface production equipment on nine wells. Upon production, Stealth has agreed to pay a $0.45 per mcf gathering and processing fee to Promax
Promax Energy Inc. is a junior oil and gas exploration
and production company focusing on natural gas in SE Alberta. It is well
positioned to play a key role in the development of 270,000 acres of shallow
gas, including platform production from the Medicine Hat/Milk River and
potential production from up to 15 other zones.
April 19, 2001
PROMAX CLOSES ACQUISITION OF SOUTH EASTERN ALBERTA PROPERTIES FOR $6,550,000
Promax Energy Inc. ("Promax" or "the Corporation") is pleased to announce the closing of an asset purchase and sale of properties for $6,550,000.
The purchase includes all of a third party’s interests in the Sunnynook, Cessford, Matziwin, Princess, Atlee, Buffalo, Alderson, and Jenner areas of South Eastern Alberta. The purchase price equates to $3.04 per barrel of oil equivalent (at 6:1) in situ on $16,133 per producing barrel of oil equivalent for 406 BOEPD. Also included are 74 km of pipelines, compression and processing facilities capable of 13.5 Mmcf/d capacity, 1.2 Mmcf/d capacity, 5000 BOPD, 15,000 BWPD capacity as well as 323 wells. Of these, 255 are producing gas wells, 21 are producing oil wells, 2 are Salt Water disposal wells, and 45 are suspended with recompletion potential. Also included are 167 gross and 58 net sections of land.
The acquisition is effective February 01, 2001 and substantially consolidates the Corporation’s position in its Cessford area of development. Upon final transfers, Promax Energy will own working and gross over-riding royalty interests in 241 Medicine Hat/Milk River wells, 82 Paleozoic wells, 74 km of pipeline infrastructure, 1850 HP of Compression and 167 sections of land in South Eastern Alberta largely in the Cessford Area.
Promax Energy Inc. is a junior oil and natural gas exploration and production company focusing on natural gas in South Eastern Alberta and is listed on the Toronto Stock Exchange under the symbol PMY. It is well positioned to play a key role in the development of 500,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River and potential production from up to 15 other horizons.
For additional information please contact Mr. Alexander
T. Lemmens, President or Mr. Randy Clark, Vice President at (403)
261-8880, Fax (403) 261-8818 or on our website at
www.promaxenergy.com
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Mera
Petroleums to invest further in Saskatchewan
By the OGJ Online Staff HOUSTON, Apr. 19 -- Canadian company Mera Petroleums Inc. plans to invest up to $4 million (Can.) over the next few months on exploration and drilling work in Saskatchewan. The spending could bring its total investment in the area to $8 million. Mera has begun a six-well drilling program with the drilling and casing of two wells in the Leader area 95 km northeast of Medicine Hat. Mera is testing the deeper well. It plans to spud and test one deep and three more shallow wells within the next few weeks. This summer, Mera plans a 24-well shallow gas program in the area. The company said it farmed out another 24-well shallow gas program close to Burstall, Sask. It retains a 20% carried interest. Mera Pres. and CEO Robert McLeay said, "Shallow gas has become more attractive with rising prices, and deeper exploration in Saskatchewan more lucrative since the introduction of the province's royalty incentive program." Due to the provincial program, Mera will pay only 2.5% royalty on the first 900 MMcf of production from some wells. The usual rate is 22.5%.
PROMAX ENERGY COMMENCES 2001 DRILLING AND COMPLETIONS PROGRAM ON ITS SOUTHEAST ALBERTA PROPERTIES
May 2nd, 2001, Calgary, Alberta Canada – Promax Energy Inc. (TSE:PMY) is pleased to announce that it has commenced its 2001 drilling program in Southeast Alberta.
The Company has mobilized three drilling rigs, with two of the rigs targeting the Medicine Hat/Milk River horizons (550m) and one rig targeting the horizons to the Paleozoic unconformity (1100m). The Medicine Hat/Milk River wells have averaged 1.5 days to drill at an average cost of $73,500 per well (drilled and cased), while the Paleozeic wells have averaged 3.5 days at an average cost of $144,000 per well (drilled and cased).
To date, in 2001 the Company has drilled and cased sixteen Medicine Hat/Milk River wells and seven Paleozoic wells. Multizone gas potential is indicated in all twenty-three wells. Test rates to 1 MMCF/D in the deeper wells and 100 MCF/D in the shallow wells have been achieved. Coincident with drilling, the Company is completing the wells including fracture stimulation as required for the Medicine Hat/Milk River zones.
Finally, two pipeline crews are actively engaged in tying-in both the 2000 and 2001 drilling program wells for both the shallow Medicine Hat/Milk River and Paleo wells. Compression and processing facilities are in place for up to 30MMCF/D (5000 BOEPD).
Promax Energy Inc. is a junior oil and gas exploration and production company focusing primarily on natural gas in southeastern Alberta. The Company now owns working interest in over 200 Medicine Hat/Milk River and Paleo wells and gross over-rides in another 241 producing Medicine Hat/Milk River wells and is well positioned to play a key role in the development of 500,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River area and potential production from up to fifteen other horizons.
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PROMAX
ENERGY INC. ANNOUNCES A NORMAL COURSE ISSUER BID
May 22nd, 2001, Calgary, Alberta Canada – Promax Energy Inc. (TSE:PMY) announces that on May 24, 2001 it will commence a normal course issuer bid (the "Bid"). The Corporation intends to acquire for cancellation up to 2,273,430 (approximately 5%) of its 45,468,603 issued outstanding common shares, being the maximum number of shares it is permitted to acquire pursuant to a normal course issuer bid under applicable securities legislation. The Bid will expire on the earlier of May 23, 2002 or the date upon which the Corporation acquires the maximum number of common shares subject to the Bid.
Under the Bid, the Corporation will acquire, from time to time, its common shares for cash through the facilities of the Toronto Stock Exchange.
In the view of the board of directors of the Corporation, the common shares of the Corporation are undervalued on the market and purchases of the Corporation’s common shares at or near the current market price would be advantageous to shareholders of the Corporation.
Promax Energy Inc. is a junior oil and gas exploration and production company focusing primarily on natural gas in southeastern Alberta. The Company now owns working interest in over 200 Medicine Hat/Milk River and Paleo wells and gross over-rides in another 241 producing Medicine Hat/Milk River wells and is well positioned to play a key role in the development of 500,000 acres of shallow gas, including platform production from the Medicine Hat/Milk River area and potential production from up to fifteen other horizons.
BY ORDER OF THE BOARD OF DIRECTORS
For additional information, please contact Mr. Alexander
T. Lemmens – President & CEO, Randy Clark – Vice President & CFO
or Mr. David Todoruk
– Investor Relations at (403) 261-8880 or Fax: (403) 261-8818 or email
us at our Websit