Midway Announces Strategic Acquisition and New Core Area in the Garrington Cardium Trend
"Midway Energy Ltd. ("Midway" or the "Company") (TSX:MEL) is pleased to announce that it has entered into an agreement to purchase certain assets of a private oil and gas company ("Privateco").
The acquired assets of Privateco include a high working interest in 9 net sections of Cardium rights in the Garrington area of Alberta, which is located approximately 80 kilometers northwest of Calgary. These assets currently produce approximately 130 boepd, 67% of which is light crude oil with reserves estimated at July 1, 2009 by independent engineers of 414,000 boe (proved plus probable) and 344,000 boe (total proved). No reserves have been booked with the associated undeveloped lands included in the transaction. Post-closing, Midway's production will be in excess of 1,000 boepd..."
"Midway's Strategic Direction
Midway is focused on using management's technical expertise, gained by successfully drilling and completing horizontals wells in the Bakken play in southeast Saskatchewan, to develop a light oil resource play in south central Alberta. With this acquisition, the Company has embarked on a consolidation strategy to acquire a significant land position in the Garrington Cardium fairway. Management will focus on changing Midway's production mix to light oil in Alberta."
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