XGEN Ventures Inc.

May 25, 2009 13:43 ET

XGEN Reports the Proposed Acquisition of Oil and Gas Assets

TORONTO, CANADA--(Marketwire - May 25, 2009) - The Board of Directors of XGEN Ventures Inc. (the "Company" or "XGEN") (NEX BOARD:XGN.H) is pleased to announce that as part of its continuing efforts to increase its holdings in oil and gas properties, it has entered into a proposed agreement with Delphi Energy Corp. (the "Vendor") to purchase their interests in certain assets in the Peace River Arch region of Northern Alberta.

The Company has agreed to purchase from the Vendor a section of pipeline estimated to be about 10Km in length. XGEN has also agreed to purchase the Vendor's interest in various wells and certain surface and mineral rights located in the Montag region, for which Delphi was a working interest partner.

The value of this transaction was negotiated at arm's length and settled for a cash purchase price of $75,853.10. The effective date of the acquisition is April 1, 2009 and a closing date of July 1, 2009 is anticipated, once certain titles and caveats are perfected and transferred.

XGEN is the operator of the Montag Gas Processing Facility, which processes natural gas in the Montag region of the Peace River Arch in Northern Alberta. The facility has a rated capacity of 15MMcf/day, and is currently processing XGEN's own production from various wellsites in the area, as well as third-party volumes.

Forward-Looking Statements

Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by the Company at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the information provided and the variations may be material. There is no representation by the Company that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements.

Neither 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 release.

Contact Information

  • XGEN Ventures Inc.
    Rod J. MacKenzie
    Managing Director