Pyramid Petroleum Provides Alberta Operations Update and Announces Pending Revolving Line of Creditadmin
Pyramid Petroleum Inc. provided an update regarding its drilling operations in Alberta and announced a revolving line of credit with National Bank of Canada, pending completion of security arrangements.
Alberta Drilling Operations
Pyramid has fulfilled its seismic option agreement on four parcels of farm-in land totaling 2,040 acres in the Provost area of southeastern Alberta. Pursuant to the farm-in agreement, by February 24, 2007, Pyramid will drill the first test well to earn 100 percent on one block of land. The well will be targeting light oil at a depth of less than 1,000 meters in a prolific Sunburst zone and two up-hole gas zones in the Bow Island and Glauconite on a structurally high closure detected by seismic. An election to drill a second test well to earn 100 percent on all four parcels will be made within 30 days thereafter. The Company may elect to farm-out up to 40 percent of its working interest in these wells to industry partners or investors.
Pyramid plans to drill on its 160 acres in the Thompson Lake area of eastern Alberta after the prospects on its Provost Area farm-in have been drilled. The Company is targeting a light oil formation in the Dina sandstone at a depth of less than 1,000 meters, as identified by seismic.
Line of Credit
Pyramid has negotiated a $4 million revolving line of credit from National Bank of Canada, secured by the Company’s Montana and Alberta assets. The $4 million credit facility will be made available to Pyramid upon satisfactory completion of the appropriate security and documentation, which is currently in progress. The proceeds will be partly used to pay off approximately $3 million of current outstanding debt owed to the operator of the Montana and Alberta assets. The balance of the funds will be available for general corporate purposes and capital expenditures in Alberta and Montana, including the drilling activity outlined above.
Pyramid Petroleum is an oil and gas exploration and production company based in Calgary, Alberta. The Company’s focus is on development of domestic and international hydrocarbon projects. Pyramid has non-operated working interests in producing properties located in Montana/Alberta and the Gulf of Mexico. The combined production net to Pyramid from these properties is approximately 325 barrels of oil equivalent per day.
The Company’s shares are listed on the TSX Venture Exchange under the symbol PYR.
Use of the term barrels of oil equivalent (“boe”) or thousands of cubic feet of gas equivalent (“Mcfe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has neither approved nor disapproved of the
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
For further information
Mansoor A. Anjum, President and CFO, Pyramid Petroleum, Inc., email@example.com, (403) 234-9000, www.pyramidpetroleum.com
Ken Wetherell, Investor Relations, Iradesso Communications, firstname.lastname@example.org, (403) 503-0144 x224
Source: Pyramid Petroleum, Inc.