County Line Energy Corp.
PINK SHEETS : CYLC
FRANKFURT : G7Q

County Line Energy Corp.

December 13, 2006 09:01 ET

County Line Energy Corp Reviews 3D Seismic Data in Search of D2 Nisku Reef Formation

CALGARY, ALBERTA--(CCNMatthews - Dec. 13, 2006) - COUNTY LINE ENERGY CORP. (PINK SHEETS:CYLC)(FWB:G7Q)

Mr. Harry Bygdnes, president of County Line Energy Corp. announces that the company has signed an agreement with BMW Energy Corp of Calgary, Alberta to acquire certain reprocessed 3D seismic data in an area referred to as the Highway 21 Prospect in central Alberta Canada.

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 and 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.

County Line Energy will pay $95,000 to BMW for the reprocessed 3D seismic data accompanied by a complete geophysical and geological report over the 2,560 acre prospect.

Should the seismic interpretation warrant County Line Energy will post the primary section of land for an Alberta Land Sale. The purchased land will be held 70% by County Line and 30% by BMW Energy.

County Line Energy will pay 100% of the cost to drill a Nisku Test Well subject to a gross overriding royalty payable to BMW of 1/50th (2.5-7.5%) on oil and 7.5% on gas.

BMW's gross overriding royalty will be convertible to a 30% working interest once County Line Energy has recovered its costs from the 3D seismic, Land sale, and Test Well.

It is anticipated that two wells could be required to adequately develop this oil pool with an additional possibility of re-entering the previously drilled wells.

Additional information on this prospect is considered confidential due to the necessity of posting land for an Alberta Land Sale.

On behalf of the Board of Directors,

Harry Bygdnes, President

We seek safe harbour.

Contact Information

  • County Line Energy Corp.
    Harry Bygdnes
    President
    (604) 250-1033
    or
    County Line Energy Corp.
    Ken Berscht
    (403) 830-7566
    Website: www.countylineenergy.com