County Line Energy Corp.

County Line Energy Corp.

January 25, 2007 09:30 ET

County Line Energy Corp. Negotiates a Farm Out Agreement on the Highway 21 Prospect in Central Alberta


Mr. Harry Bygdnes, President of County Line Energy Corp., announces that the company has signed a farm out agreement with Nuance Exploration Ltd., of Vancouver, British Columbia, wherebye Nuance will pay the $95.000 required to evaluate the Highway 21 Prospect previously announced in a News Release by County Line Energy Corp. dated December 13, 2006.

All of the terms of the previously announced agreement with BMW Energy and County Line Energy will apply.

The payment of $95.000 will entitle Nuance to share 50/50 in the agreement originally signed between County Line and BMW Energy.

"The 3D seismic data was originally shot throughout the area in search of shallow cretaceous gas.

BMW Energy Corp. will reprocess the data and provide the interpretation of a deeper geological event referred to as the D2 horizon.

The target of this new exploration program is referred to as the Nisku formation which is noted for having massive oil producing pinnacle reef formations. Historically these Nisku pinnacle reefs have been capable of producing 400-500 barrels of oil per day with reserves of 2-3 million barrels of oil in place.

The area under review consists of 2,560 acres. Two wells have been drilled on the property, one in 1951 and the other in 1984. These wells produced approximately 60,000 barrels of light crude oil. While these wells were both located in Nisku pinnacle reef formation, it is believed that both were located on the fringe of a larger reef complex."

The farm out arrangement will give County Line Energy a "free look" at the seismic data. The farm out agreement with Nuance Resources commits to a 50/50 partnership on the development of the property should the interpretation of the reprocessed data confirm the existence of a Nisku pinnacle reef drill target.

On behalf of the Board of Directors,

Harry Bygdnes, President

We seek safe harbour.

Contact Information

  • County Line Energy Corp.
    Harry Bygdnes
    (604) 250-1033
    County Line Energy Corp.
    Ken Berscht
    (403) 830-7566