Kicking Horse announces oil and gas acquisition in Alberta

Source:Kicking Horse Energy Inc.

Kicking Horse announces oil and gas acquisition in Alberta

Kicking Horse Energy Inc. ("Kicking Horse" or the "Company") (TSX VENTURE: KCK) is pleased to announce that it has acquired nine 100% working interest ("WI") sections of Montney rights in the Kakwa area of Alberta (the "New Acreage"). The New Acreage is located immediately offsetting the Company's West Kakwa acreage and within 3 miles of the Company's East Kakwa production block. Kicking Horse intends to spud a vertical assessment well on the New Acreage in late Q3 2015. The Company acquired the New Acreage in exchange for 27 sections of deep rights in the Chime area of Alberta, while retaining the shallow rights in the Chime acreage. This exchange transaction was carried out on a zero net cost basis to Kicking Horse.

In a separate transaction, Kicking Horse sold 2.9 net sections, on an after earning basis, of various shallow rights in the Wapiti area, on acreage that it had previously farmed out, for $3.0MM cash consideration.

Steve Harding, President and CEO, commented, "Through these transactions we have substantially grown our core Kakwa area and received non-dilutive funding to help finance our planned upcoming vertical well on the newly acquired acreage. The new Kakwa acreage is strategically important to Kicking Horse, given that it is approximately 500 meters shallower than the disposed acreage and given its strategic proximity to our East Kakwa production and existing infrastructure. We continue to experience positive well results in the area and we are eager to apply our technical understanding at East Kakwa as we expand into the newly acquired acreage and our additional acreage at West Kakwa."

 

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