Kenartha Oil and Gas Company Limited to Commence
Payments to Warrant Purchasers
(May 8, 2008)
Toronto, Ontario- Kenartha Oil and Gas Company Limited
(Frankfurt Exchange-KJ5), is a junior natural resource
exploration and producer of natural gas (“NG”) in
southern Ontario, Canada. The Company has in production
three (3) NG Wells (100% owned) in Wellington Township,
Ontario, and is funding a planned thirty (30) wells
exploration drilling programs in Norfolk-Haldimand
County, Ontario
to earn a 49% working interest in the NG Wells drilled.
In the Norfolk-Haldimand County play, the majority
interest (51%) holder is a private entity that is the
designated Operator for the programs. Agreements are in
place with Union Gas to establish two (2) Meter Stations
to receive NG and to purchase all NG delivered to these
Meter Stations.
The Operator reports that Union Gas completed and
commissioned the 1st Meter Station in late
2007 and the 2nd Meter station on April 25,
2008. Currently there are twelve (12) Wells delivering NG to Union Gas, of
which seven (7) are delivering to the 1st
Meter Station and five (5) delivering to the 2nd
Meter Station. All twelve Wells are in an initial
production cycle, which primarily consists of the
periodic purging of the formation liquids and the
regulating of operating pressures. The Operator is of
the opinion that the continual adjusting and tweaking of
these Wells is necessary to achieve the best flow rates
and thereby maximize the Wells’ production life.
Additionally, the Operator has executed a contract with
the pipeline contractor to install the next path of
collection pipelines with an estimated completion date
of June end, 2008. This will allow the balance of the
initial program of fifteen (15) Wells to be placed on
production and some of the Wells in the second program.
The Company has a “Pay-Back” clause in the agreement
with the Operator that entitles the Company to receive
100% of the net profits generated from the production to
recapture all of the funds supplied to drill the Wells.
The Investors warrants state the Company will pass
Pay-Back funds to the warrant purchasers at an amount
equivalent to their investment of the initial Units
purchased before their net profit interest royalty
payments commence. Accordingly, Pay-Back funds to
cover the period up to March end, 2008 are being
calculated for distribution.
In October 2007, the Company concluded that its
opportunities to participate in small hydro-electric
generating projects in the country of Brazil had
deteriorated and thus has cancelled pursuing these
ventures.
About Kenartha Oil and Gas Company Limited
Kenartha Oil & Gas Company Limited (Kenartha) is an oil and natural gas exploration, acquisition, development and production firm.
The Company holds interests in natural gas production facilities in southern Ontario, Canada near Canada's first oil wells. Kenartha has sales agreements with Union Gas Limited for the purchase of its natural gas production.
Kenartha is traded on the Frankfurt Exchange under the symbol “KJ5”. For further information please visit the company’s website at kenartha.com.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
Information presented in this newsletter contain 'forward looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be 'forward looking statements.' Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as 'projects', 'foresee', 'expects'', 'will,' 'anticipates,' 'estimates,' 'believes,' 'understands' or that by statements indicating certain actions 'may,' 'could,' or 'might' occur.
For further information contact:
Mr. Ernest Harrison, EM, CEO
Mr. Marty Martinello, B.A., V.P.
Phone: 705-474-7282
Fax: 705-474-5491
Email: ernie@kenartha.com
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Mr. Robert Chase, B.A., CFO
Phone:416-368-9595
Fax: 416-368-6827
Email: rob@kenartha.com |
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