Morgan Creek Energy Announces Letter of Intent to Acquire Interest in Bayou Choctaw Oil and Gas Prospect in Louisiana
Morgan Creek Energy Corp. (Nachrichten) (OTC Bulletin Board: MCRE; Frankfurt, Berlin: M6C) (the “Company”), announces that it has entered into a letter of intent to acquire a 25% working interest in the “Bayou Choctaw” oil and gas project located in Iberville Parish, State of Louisiana. The prospect includes both development and exploration aspects related to the project. Proven Undeveloped Reserves have been identified in the “Bolmex” and “Nonion struma” geological zones at a depth of approximately 11,500 feet. An independent reserve report attributes an estimated 49 MBBLS of oil and 269 MMCF of gas of proven undeveloped reserves net to Morgan Creek’s working interest. Other potential targets have been identified through 2-D and 3-D seismic information. The net revenue interest in the project is 73%.
The acquisition is subject to final due diligence, a July 31, 2006 closing date, will require the Company to issue 200,000 restricted common shares in the capital of the Company with piggy back registration rights, and pay $250,000 to acquire the interest. In addition the Company will pay its 25% share of already incurred project costs and pay its proportionate 25% share on a ground floor basis to acquire additional 3-D seismic. The Company has the option to participate in the first two wells and carry the promoting parties through the drilling of those wells to “casing point” on the basis of paying for 1/3rd of the cost to earn its 25% working interest. Subsequent to the drilling of the first two wells, costs will be shared in direct proportion to working interest participation without any further carried working interest. In the event of a discovery, facilities necessary for the production of the wells and gas pipeline infrastructure are available.
About Morgan Creek Energy Corp.: Morgan Creek Energy Corp. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. For further information see: http://www.morgancreekenergy.com/
Stock Exchange Information: Symbol: OTCBB – MCRE Frankfurt/Berlin Symbol – M6C, WKN: WKN: A0JL4C, ISIN: US61732R1077 SAFE HARBOR STATEMENT
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