Cumberland Oil & Gas Ltd.

March 11, 2010 08:30 ET

Cumberland Oil & Gas Ltd. Begins Trading on the TSX Venture Exchange and Announces Acquisition of Doe Creek Oil Pool

CALGARY, ALBERTA--(Marketwire - March 11, 2010) - Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland") announced today that it's common shares will commence trading today on the TSX Venture Exchange under the trading symbol "COG".

Cumberland also announced today that, effective March 1, 2010, it has acquired operatorship of the Valhalla Doe Creek "M" Pool (the "Pool") in the Peace River Arch area of Alberta pursuant to a Pooling and Farmout Agreement (the "Agreement") with the working interest owners of the Pool.

Under the terms of the Agreement, Cumberland has assumed 100% ownership of the Pool subject to spending a minimum of $2.65 million of capital to implement secondary recovery operations in the Pool.

Cumberland intends to drill two new oil wells, a water-source well and convert two existing oil wells to water- injection wells, prior to the end of the third quarter of 2010. Production equipment, pipelining and central battery facilities will also be installed. The Pool is currently producing approximately 20 barrels per day of light gravity sweet oil.

About Cumberland Oil & Gas Ltd.

Cumberland has been engaged in the business of exploring for, developing and producing and, acquiring oil and natural gas properties in western Canada since it commenced operations in October 2008. It has concentrated on the exploitation and development of drilling prospects in its core areas in the Province of Alberta, including south-east Alberta and the Peace River Arch. Cumberland's exploration and development projects are currently directed towards both natural gas and light oil prospects.

The Cumberland management team most recently led Rockyview Energy Inc., a TSX-listed oil and gas company that grew to approximately 3,000 BOE/d when it was sold to Direct Energy in January 2008. Prior to that, they were the management group at APF Energy Trust, a TSX-listed income trust with daily production of 18,000 BOE/d, which was sold to StarPoint Energy Trust in 2005.

Reader Advisory

Certain information regarding Cumberland set forth in this news release including management's assessment of future operations and expenditures and the timing thereof to implement secondary recovery operations in the Pool contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Cumberland's control, including without limitation, exploration, development and production risks, the receipt of regulatory approvals, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated from the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Cumberland does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Cumberland Oil & Gas Ltd.
    Alan MacDonald
    Vice President, Finance and Chief Financial Officer
    (403) 237-0790