Cougar Oil and Gas Canada Inc.
OTC Bulletin Board : COUGF

January 03, 2011 02:16 ET

Cougar Oil and Gas Canada Inc. Announces Operations Update and Amalgamation With Cougar Energy, Inc.

CALGARY, ALBERTA--(Marketwire - Jan. 3, 2011) - Cougar Oil and Gas Canada Inc. ("Cougar" or the "Corporation") (OTCBB:COUGF) is pleased to provide an operations update to the previously announced Q1, 2011 Trout core area multi-well drilling program and 3D seismic program and an additional two well deepening operation. Cougar is also pleased to announce the amalgamation with the Corporation's 100% wholly owned subsidiary, Cougar Energy, Inc.

The previously announced 23.8Km2 high resolution 3D seismic program has now been advanced by 2 weeks. It is anticipated the field work will begin no later than January 15, 2011. The initial field work will include the source and receiver line clearing and surveying and will be followed by the seismic shot hole drilling and data recording crews. The seismic program is expected to take approximately 25 days in the field and 90 days for processing and data analysis afterwards. This seismic data will provide the Corporation with the detailed geophysical information needed to support the geological selection of the drilling programs which will be executed over the next 18 to 24 months.

The previously announced multi-well drilling program continues on schedule with final permitting underway. Cougar has been working diligently with various drilling service companies to finalize the project's scheduling and budgeting information. It is anticipated the drilling field work will begin by February 15, 2011.

Cougar is also currently working on a reactivation program in the Trout core area, which involves contracting a service rig to deepen two existing wells to test and produce an additional lower Keg River oil formation. The two wells which will be deepened have been suspended for several years but are tied in with pipelines to the main Cougar production facility. The additional lower Keg River oil formation was identified through detailed analysis of the reprocessed 3D seismic acquired in September 2010 and has the potential to add additional reserves, production and cash flow. The service rig will move onto the wells the first week of January, 2011 and the results should be known by month end. 

Effective January 1, 2011 Cougar has completed the amalgamation requirements with its 100% wholly owned subsidiary Cougar Energy, Inc. and will change its financial reporting year end from July 31, 2011 to December 31, 2010. Audited financials will be filed for the stub period August 1, 2010 to December 31, 2010. Cougar has assumed all of the Cougar Energy, Inc. contracts, properties and obligations through the amalgamation.

Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "Thus we continue to build on the foundation of existing production of light sweet crude oil, net positive cash flow, excellent net backs due to an extensive infrastructure (pipelines, batteries, roads) to support up to 2500 bbl/d without extensive capital infusions for additional production brought on line, and multiple opportunities to grow production and revenue on the existing lands held. Such as the new work programs including the 2 well reactivation/deepening program, by the ongoing successful maintenance programs that have brought us to this point and the previously announced 3D seismic and the announced 2-3 well development step out horizontal and directional drilling programs for Q1, 2011 and supplemented with the planned drilling exploration programs for Q3 and Q4 2011 on the lands acquired in July of 2010 we have an extremely well defined plan of development for the next 12 to 18 months."

About Cougar Oil and Gas Canada Inc.:

Cougar Oil and Gas Canada Inc. (OTCBB:COUGF) is based in Calgary, Alberta, Canada and a publicly traded oil and gas exploration and production company. The focus is on the exploration and development of Canadian based onshore oil and gas properties. The current projects are the Trout light oil production area in north central Alberta, Lucy in the Horn River Basin in northeast British Columbia and First Nation Joint Venture and area projects located in north central Alberta.

Cougar's strategy is to increase shareholder value building on the existing infrastructure and production as the foundation and a large contiguous land base with multiple opportunities to grow through the drill bit with targets supported by 2D and 3D seismic and excellent well control.

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Forward-looking Statements:

This press release contains forward-looking statements. The words or phrases "would be", "will", "intends to", "will likely result", "are expected to", "will continue", "is anticipated", "estimate", or similar expressions are intended to identify "forward-looking statements". The Company's business is subject to various other risks and uncertainties, which may be described in its corporate filings ( or (SEDAR in Canada). Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Cougar Oil and Gas Canada Inc. undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

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