Ausam announces agreement to purchase oil and gas assets
Friday, August 8th 2008
Ausam Energy Corporation announced that it has, through its wholly-owned subsidiary Noram Resources, Inc., signed an asset purchase agreement with a private company to acquire 20% undivided interest in certain oil gas properties which include approximately 19,500 gross acres (13,800 net acres) located in Caddo Parish, Louisiana, Miller County, Arkansas, and Cass and Marion Counties, Texas.
The properties to be purchased contain production from the Rodessa, Petite, Upper Travis Peak and Cotton Valley formations. Two wells have been fracced in the Cotton Valley formation and are currently being tested. Ausam believes the acreage is prospective for the Lower Travis Peak, Upper Cotton Valley, and Cotton Valley Lime/Bossier/Haynesville formations, but there are no producing wells in these formations to date.
Mark Avery, President of Ausam, said, “The acquisition complements the Company’s existing exploration portfolio with an acreage position that contains in excess of 100 possible drilling locations. The expected drilling program has the potential to add substantively to the Company’s value.”
Closing of the purchase is subject to customary terms and conditions, including, but not limited to, satisfactory due diligence as to title and environmental matters. Closing is also dependent upon the Company securing the necessary financing under terms acceptable to the Company’s board of directors. There can be no assurance that such financing can be obtained, or if obtained, obtained under acceptable terms.
