Southern Arc Provides Update On Nickel Oil & Gas
Southern Arc Minerals Inc. (“Southern Arc” or the “Company”) wishes to provide an update to its shareholders on the activities of Nickel Oil & Gas Corp. (“Nickel”), a private company, owned as to 37.59% by Southern Arc.
Appointment of CEO
In September, 2010 Nickel appointed Bruce McIntyre, P. Geol., as its Chief Executive Officer. Mr. McIntyre is an experienced oil & gas professional with more than 33 years of experience in the industry. He has been the President of a number of public and private Alberta based oil & gas companies over the last 20 years.
Drilling Activities and Corporate Update
In July, 2010 Nickel drilled its horizontal Notikewan commitment well located in the Pine Creek, Alberta area (see January 13, 2010 news release) in connection with a farmout and option agreement. By doing so, Nickel earned a 60% working interest in this well and in two sections of land. The well encountered porous gas charged sands over a horizontal length of approximately 800 metres. Nickel elected to have the operator pay for the completing, equipping and tie of the well, in consideration for which the operator will recover 125% of its costs before Nickel receives its 60% interest in production. The well is currently producing at a rate of 480 mcf per day with approximately 20 barrels per day of natural gas liquids. As of February, the well had produced net revenues of $491,290 of the $1,581,300 to be recovered by the operator. At current rates of production, if natural gas prices were sustained at the current low level, Nickel would begin to receive cash flow from the well by December, 2013.
Nickel also elected to have the operator pay for and complete the equipping and tie in of the vertical Belly River well located on the Brewster Property (see news releases dated January 13, 2010 and November 30, 2009). The operator will receive 125% of its costs ( $1,023,760) before Nickel receives its 68% revenue interest in the well. Currently the well is producing 540 mcf per day and approximately 21 barrels per day of natural gas liquids. At current rates of production and sustained low natural gas prices, Nickel would begin to receive cash flow from the well by June, 2015. Based on the Company activities to date at Brewster, the Company has earned 2 sections.
Nickel did not proceed with the previously announced business combination with Minerva Minerals and is instead pursuing other opportunities under the direction of its new CEO.
Southern Arc Minerals Inc.
“John Proust”
Chairman and CEO
For Further Information Please Contact:
John G. Proust, Chairman and CEO
Southern Arc Minerals Inc.
Suite 1500, Box 1078, 885 West Georgia Street, Vancouver, BC V6C 3E8 Canada
Telephone: (604) 676-5241 Fax: (604) 676-5246
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Forward Looking Statements: This news release contains forward looking statements relating to expected or anticipated future events and operations, timing of projects and anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company’s capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Appointment of CEO
In September, 2010 Nickel appointed Bruce McIntyre, P. Geol., as its Chief Executive Officer. Mr. McIntyre is an experienced oil & gas professional with more than 33 years of experience in the industry. He has been the President of a number of public and private Alberta based oil & gas companies over the last 20 years.
Drilling Activities and Corporate Update
In July, 2010 Nickel drilled its horizontal Notikewan commitment well located in the Pine Creek, Alberta area (see January 13, 2010 news release) in connection with a farmout and option agreement. By doing so, Nickel earned a 60% working interest in this well and in two sections of land. The well encountered porous gas charged sands over a horizontal length of approximately 800 metres. Nickel elected to have the operator pay for the completing, equipping and tie of the well, in consideration for which the operator will recover 125% of its costs before Nickel receives its 60% interest in production. The well is currently producing at a rate of 480 mcf per day with approximately 20 barrels per day of natural gas liquids. As of February, the well had produced net revenues of $491,290 of the $1,581,300 to be recovered by the operator. At current rates of production, if natural gas prices were sustained at the current low level, Nickel would begin to receive cash flow from the well by December, 2013.
Nickel also elected to have the operator pay for and complete the equipping and tie in of the vertical Belly River well located on the Brewster Property (see news releases dated January 13, 2010 and November 30, 2009). The operator will receive 125% of its costs ( $1,023,760) before Nickel receives its 68% revenue interest in the well. Currently the well is producing 540 mcf per day and approximately 21 barrels per day of natural gas liquids. At current rates of production and sustained low natural gas prices, Nickel would begin to receive cash flow from the well by June, 2015. Based on the Company activities to date at Brewster, the Company has earned 2 sections.
Nickel did not proceed with the previously announced business combination with Minerva Minerals and is instead pursuing other opportunities under the direction of its new CEO.
Southern Arc Minerals Inc.
“John Proust”
Chairman and CEO
For Further Information Please Contact:
John G. Proust, Chairman and CEO
Southern Arc Minerals Inc.
Suite 1500, Box 1078, 885 West Georgia Street, Vancouver, BC V6C 3E8 Canada
Telephone: (604) 676-5241 Fax: (604) 676-5246
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Forward Looking Statements: This news release contains forward looking statements relating to expected or anticipated future events and operations, timing of projects and anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company’s capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
