(TSX-V:CEX)
CALGARY, Aug. 22, 2012 /CNW/ - Contact Exploration Inc.
("Contact" or the "Company") (TSX-V: CEX) is pleased to
announce that drilling commenced today on the CEX HZ 14-30-63-5W6
well, being the second well drilled by the Company on its Deep
Basin Montney lands at Kakwa. The well is targeting the
Montney Formation and is located
approximately two miles from the Company's initial Montney well, which tested at greater than
2,500 BOE/d. The new well is programmed for a total drilled length
of 4,684 metres, including a horizontal leg of 1,200 meters.
Contact operates the well with a 25% working interest.
Contact anticipates that the drilling of this well will be
finalized by October 2012, with well
completion (stimulation and testing) to be completed by
November 2012. Additionally,
the Company confirms that the pipeline construction to tie-in the
Company's initial well in the Kakwa area continues, with
anticipated construction completion by late September 2012.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company
which is currently pursuing a new core area in Alberta's "Deep Basin" targeting the
Montney Formation.
Historically, the Company has been focused on Canadian East Coast
onshore oil and gas exploration and development. Our philosophy is
to operate exploration and development in our core areas of
Stoney Creek, Hillsborough and Edgett's Landing,
New Brunswick, and Deep Basin,
Alberta, and to participate
through overrides and carried interests in certain regional
unconventional plays in Nova
Scotia and Newfoundland.
ADVISORY ON FORWARD-LOOKING
STATEMENTS: This press 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", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or
statements. In particular, but without limiting the forgoing,
this press release contains statements concerning the timing to
drill and complete its Montney
well in the Kakwa area of Alberta
and the timing of completion of the pipeline in the Kakwa area of
Alberta, among
others.
Forward-looking statements or information are
based on a number of material factors, expectations or assumptions
of Contact which have been used to develop such statements and
information but which may prove to be incorrect. Although Contact
believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on
them because Contact can give no assurance that they will prove to
be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. In particular, in addition to other
factors and assumptions which may be identified herein, no
assurances can be given respecting: whether the Company's
exploration and development activities respecting the Kakwa
prospect will be successful or that material volumes of petroleum
and natural gas reserves will be encountered, or if encountered can
be produced on a commercial basis; the ultimate size and scope of
any hydrocarbon bearing formations at Kakwa or; that drilling
operations in Kakwa will be successful such that further
development activities in this area are warranted; that Contact
will continue to conduct its operations in a manner consistent with
past operations; results from drilling and development activities
will be consistent with past operations; the accuracy of the
estimates of Contact's reserve volumes; the general stability of
the economic and political environment in which Contact operates;
drilling results; field production rates and decline rates; the
general continuance of current industry conditions; the timing and
cost of completion of the pipeline in the Kakwa area; the timing
and cost of pipeline, storage and facility construction and
expansion and the ability of Contact to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Contact
operates; and the ability of Contact to successfully market its oil
and natural gas products.
Further, events or circumstances may cause
actual results to differ materially from those predicted as a
result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including, without limitation: changes in commodity prices; changes
in the demand for or supply of the Company's products;
unanticipated operating results or production declines; changes in
tax or environmental laws, royalty rates or other regulatory
matters; changes in development plans of Contact or by third party
operators of Contact's properties, increased debt levels or debt
service requirements; inaccurate estimation of Contact's oil and
gas reserve and resource volumes; limited, unfavourable or a lack
of access to capital markets; increased costs; a lack of adequate
insurance coverage; the impact of competitors; and certain other
risks detailed from time-to-time in Contact's public disclosure
documents. Additional information regarding some of these
risk factors may be found under "Risk Factors" in the Company's
Management Discussion and Analysis prepared for the year ended
March 31, 2012. The
reader is cautioned not to place undue reliance on this
forward-looking information. The forward-looking statements
contained in this press release are made as of the date hereof and
Contact undertakes no obligations to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither 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 release.
SOURCE Contact Exploration Inc.