SOURCE: Lotta Coal Inc.

March 01, 2007 09:00 ET

Lotta Coal Announces Acquisition of Strategic Oil and Gas Properties in Northern Alberta, Canada

CALGARY, AB -- (MARKET WIRE) -- March 1, 2007 -- Lotta Coal Inc. (PINKSHEETS: LCOL) today announced the closing of its acquisition of three oil and gas exploration companies in Northern Alberta -- Peace West Energy Corporation ("PWEC"), Great Bear Explorations Inc ("GBX") and Lesser Slave Lake Explorations Inc. ("LSL"). The Companies were acquired for a total of 45,000,000 shares of common stock of LCOL, issued under rule 144 of the Securities Act of 1933.

PWEC's total land holdings include 54,720 acres (85.5 square miles) in the Boyer area, (including Beaver First Nation Reserves), a prolific shallow gas field near High Level in Northern Alberta, with approximately 1,100 producing shallow gas wells, and a well developed pipeline and processing infrastructure.

GBX currently has a land base of approximately 39,680 acres (62 square miles), consisting of surface and sub-surface rights on the Woodland Cree First Nations Reserves 226, 227, and 228, which have been farmed out to GBX pursuant to a Joint Venture Agreement. A major international oil and gas company has an extensive heavy oil operation adjacent to the property, and there is also significant potential for both light oil and gas, based on the Company's analysis which includes the many producing wells drilled in several formations adjacent to and near the properties.

LSL currently has a land base of approximately 10,880 acres (17 square miles) consisting of surface and sub-surface rights on the Swan River First Nations Reserve. Significant gas and light oil potential is apparent, based on historical drilling results as well as the extensive exploration activity by numerous companies surrounding the LSL holdings.

Through these acquisitions, the Company now has rights to over 105,000 acres (160 square miles) of land to explore and develop oil and gas. Importantly, adjoining each of the separate areas, major companies have been operating successfully for many years.

In phase 1 of its development strategy, the Company plans a seismic and drilling exploration program to maximize the recovery of potential reserves and refine its future development strategy for the various land parcels, and to acquire further property in its core areas.

About Lotta Coal

Lotta Coal Inc. is a unique oil and gas company with three separate wholly owned operating subsidiaries, each with rights to explore and develop oil and gas resources in partnership with different First Nations commercial entities in Northern Alberta, Canada. The Company is publicly traded on the over-the-counter market under the Ticker symbol: LCOL.

The Company has been able to assemble over 105,000 acres (165 square miles) of land, all with a 100% interest.

Important Information About Forward-Looking Statements

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CanAm's website does not constitute a part of this release.

Contact Information

  • Contact:
    Mr. David Hayes
    Director
    Tel (778) 882-8871