August Energy Corp.

August Energy Corp.

January 06, 2005 14:30 ET

August Energy Announces Sale of Portion of its Interest in Puckett Oil and Gas Field


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AUGUST ENERGY CORP.

PINK SHEETS SYMBOL: AENC

JANUARY 6, 2005 - 14:30 ET

August Energy Announces Sale of Portion of its
Interest in Puckett Oil and Gas Field

PUCKETT, MISSISSIPPI--(CCNMatthews - Jan. 6, 2005) - August Energy Corp.
(PINK SHEETS:AENC), announced today that it has entered into an
agreement with Consolidated Odyssey Exploration Inc. (ODE) to sell 16%
of its interest in the Puckett Oil and Gas Fields in Puckett,
Mississippi to ODE for the price of USD $150,000.

ODE will immediately begin earning 16% of net revenue from the field
subject to the terms of the agreement, with a commitment to expend USD
$750,000 over the next six months for current re-completions and new
drilling prospects.

August Energy had purchased 50% working interest in the leasehold rights
in the Puckett Oil and Gas Field last year. The field is located in
Rankin and Smith Counties, Mississippi.

By selling 16% of its working interest to ODE, August has more capital
to invest in the further development of the Puckett Field.

Certain information included in this communication (as well as
information included in oral statements or other written statements made
or to be made by August Energy Corp.) contain statements that are
forward looking, such as statements related to the future anticipated
direction of the oil and gas industry, plans for future expansion,
various property development activities, planned capital expenditures,
future funding resources, anticipated production and reserve growth.
These forward-looking statements are subject to a number of known and
unknown risks and uncertainties that could cause actual operations or
results to differ materially from those anticipated.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    August Energy Corp.
    Jurgen Wolf
    (604) 681-1559