Cumberland Oil & Gas Ltd.
TSX VENTURE : COG

September 19, 2011 12:35 ET

Cumberland Oil & Gas Ltd. Agrees to Acquire Partner's Interest in Liquids Rich Montney Project

CALGARY, ALBERTA--(Marketwire - Sept. 19, 2011) - Cumberland Oil & Gas Ltd. (TSX VENTURE:COG)("Cumberland" or the "Company") is pleased to announce that it has agreed to acquire its partner's 60% working interest in lands located at West Nig in N.E. British Columbia. Total consideration is $250,000. Closing is expected to occur within five business days, following customary due diligence.

Upon closing, Cumberland will own a 100% working interest in 1,128 hectares of land situated in the middle of an emerging liquids rich Montney play. Recent British Columbia Crown land sales adjacent to the Company's acreage have seen prices of between $1,800 and $2,000 per hectare, valuing the Company's 100% interest at West Nig in excess of $2.0 million.

This acquisition enables Cumberland to operate and proceed with the re-completion of the d-08-C/094-H-04 well-bore in the fourth quarter of this year. The Company plans to perforate, fracture stimulate and production test both the Upper and Lower Montney zones in this cased well. Both zones have been successfully developed by numerous operators in this region with exceptional results.

The Company's lands have pipeline infrastructure with all season access through the middle of the acreage. Positive production tests could lead to the drilling of at least four Upper and four Lower Montney horizontal wells beginning in 2012.

Reader Advisory

Forward Looking Statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect', "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: anticipated closing date of the acquisition; re-completion of the d-08-C/094-H-04 wellbore in the fourth quarter of this year and the Company's drilling plans for 2012.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Cumberland which have been used to develop such statements and information but which may prove to be incorrect. Although Cumberland believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Cumberland can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the value of the acquired lands; results from drilling and development activities consistent with past operations and offsetting wells; continued and timely development of infrastructure in areas of new production; availability of debt and equity financing and cash flow to fund Cumberland's current and future plans and expenditures; the impact of increasing competition; stability of the economic and political environment in which Cumberland operates; timely receipt of any required regulatory approvals; ability of Cumberland to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; ability of Cumberland to operate the field in a safe, efficient and effective manner; ability of Cumberland to obtain financing on acceptable terms; field production and decline rates; ability to replace and expand oil and gas reserves through acquisition, development and exploration; timing and cost of pipeline, storage and facility construction and expansion and the ability of Cumberland to secure product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes, and environmental matters in the jurisdictions in which Cumberland operates; and the ability of Cumberland to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: an incorrect assessment of the acquired lands; failure to realize the anticipated benefits of the acquired lands; changes in commodity prices; changes in the demand for or supply of Cumberland's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans by Cumberland; inaccurate estimation of Cumberland's oil and gas reserve and resource volumes; limited or a lack of access to capital markets; increased costs; inadequate insurance coverage; impact of competitors and certain other risks detailed from time-to-time in Cumberland's public disclosure documents (including, without limitation, those risks identified in this news release and Cumberland's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release and Cumberland does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, 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