Admiral Bay Acquires 29 Wells and 39,000 Net Acres in Devon Project Area and Partners Interest in Pipeline
Posted on: Friday, 23 May 2008, 18:00 CDT
Admiral Bay Resources Inc. (TSX VENTURE: ADB) ("Admiral Bay" or the "Company") is pleased to announce that it has reached agreement to acquire approximately 39,000 net acres, 28 producing and SI wellbores and a SWD well in the Ft. Scott Project that immediately offsets its Devon Project. The Company also acquired the 50% interest in the Bourbon County Pipeline ("BCPL") it does not currently own. The acquisition more than doubles Admiral Bay's net acreage position in the Devon Project area and gives it complete control of the gathering system. This new acreage adds approximately 50 bcf of 3P reserves potential to the Devon Project area. The Ft. Scott Project currently produces 50-80 mcfpd into the BCPL system. The Company is reviewing alternatives for increased activity in this area to grow production and reserves.
The Company will issue 3 million shares of its common stock to the owners of the Ft. Scott Project and BCPL. In addition, the sellers will have a 25% back in interest after 120% payout on a project basis on the Ft. Scott Project acreage. One of the sellers, Running Foxes Petroleum ("RFP"), owns a minority interest (less than 10% percent in aggregate) in both BCPL the Ft. Scott Project, and is controlled by Steven A. Tedesco, President, CEO and a director of Admiral Bay. The other seller is an unaffiliated private company. RFP and the private company acquired their interest in the Ft. Scott Project and BCPL prior to Mr. Tedesco joining Admiral Bay.
Closing of the transaction is contingent upon approval from the TSX Venture Exchange for the issuance of the stock.
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts: Admiral Bay Resources Inc. Steven Tedesco President & C.E.O. (303) 350-1255 (303) 617-8956 (FAX) Email: stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington CFO (303) 350-1255 (303) 708-1861 (FAX) Email: rcarington@admiralbay.com Website: www.admiralbay.com
SOURCE: Admiral Bay Resources Inc.
Source: MARKET WIRE
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