Cumberland Oil & Gas Ltd.
TSX VENTURE : COG

Cumberland Oil & Gas Ltd.

June 25, 2012 18:49 ET

Cumberland Oil & Gas Ltd. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - June 25, 2012) - Further to its news release dated May 17, 2012, Cumberland Oil & Gas Ltd. ("Cumberland" or the "Company") (TSX VENTURE:COG), is pleased to provide an update on the drilling of an Upper Montney horizontal well on its land at West Nig, British Columbia.

In December 2011, Cumberland reported that it had entered into a farm-out and joint venture agreement coverings its 1,128 hectares at West Nig. The earning well, HZ W NIG b-97-K/94-A-13 (the "Earning Well") has been spudded and drilling operations are underway.

The Earning Well is targeting the Triassic Upper Montney at a true vertical depth of approximately 1,760 metres and the horizontal well trajectory will be approximately 2,200 metres in length. Drilling operations are expected to take upwards of three weeks with plans to conduct the completion and production testing immediately thereafter.

The Upper Montney in this area is believed to be over-pressured with very attractive liquids content. Both the Upper and Lower Montney zones have now been successfully completed by other operators in this area with very encouraging results. Due to the high liquids content in this specific area, assuming exploration success, this project is expected to be economically viable at current natural gas and natural gas liquids prices.

READER ADVISORIES

Forward-Looking Statement Advisory

Certain information set forth in this news release, contains forward-looking statements, including the drilling operations on the Earning Well, the depth and trajectory of the Earning Well, the total estimated time to drill, complete and production test the Earning Well, the belief of the presence of liquids rich natural gas in the Upper Montney formation and the anticipated economics of the area due to the anticipated presence of liquids rich natural gas in the area. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Cumberland's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, reliance on third parties, including Cumberland's joint venture partner, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect geological and geophysical assessments, failure to realize the anticipated benefits of acquisitions, and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Cumberland's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Cumberland could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Cumberland will derive therefrom. Cumberland disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as 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