SOURCE: Lotta Coal Inc.

March 08, 2007 09:00 ET

Lotta Coal Successfully Completes the First 7 Shallow Gas Wells in Northern Alberta

CALGARY, AB -- (MARKET WIRE) -- March 8, 2007 -- Lotta Coal Inc. (PINKSHEETS: LCOL) today announced that it has successfully drilled and completed seven shallow gas wells at its Boyer field near High, Level, Alberta.

The seven wells have been cased and logged in preparation for tie-in and production from the Bluesky formation. These wells are each anticipated to produce between 65 and 100 mcf per day. In addition to the seven wells drilled, the Company completed a further re-entry well in the same area for a total of 8 wells ready for tie-in and production.

The Company is currently developing the engineering and pipeline layout to complete and tie in the wells to commence production and complete the earning of 40 sections of land, and is negotiating with the two major pipeline carriers in the area to access the infrastructure for compression and carrying of the gas to market.

The Company has invested in excess of $3,400,000 in drilling and land acquisitions. The Company’s current land base in its Boyer field provides for the drilling of 164 additional wells and therefore a total of up to 172 wells, which the company's geologists expect could produce between 11,180 mcf per day to 17,200 mcf per day.

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%. Over $3,400,000 has been invested since September 2006 on drilling and acquisition activities.

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