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Ausam announces agreement to purchase oil and gas assets
(Canada Newswire English Via Acquire Media NewsEdge) Attention Business Editors
TSX Venture Exchange -Symbol "AZE"
CALGARY, Aug. 7 /CNW/ - Ausam Energy Corporation ("Ausam" or the "Company") announced today that it has, through its wholly-owned subsidiary Noram Resources, Inc., signed an asset purchase agreement (the "Acquisition Agreement") with a private company to acquire 20% undivided interest in certain oil gas properties which include approximately 19,500 gross acres (13,800 net acres) located in Caddo Parish, Louisiana, Miller County, Arkansas, and Cass and Marion Counties, Texas.
The properties to be purchased contain production from the Rodessa, Petite, Upper Travis Peak and Cotton Valley formations. Two wells have been fracced in the Cotton Valley formation and are currently being tested. Ausam believes the acreage is prospective for the Lower Travis Peak, Upper Cotton Valley, and Cotton Valley Lime/Bossier/Haynesville formations, but there are no producing wells in these formations to date.
Mark Avery, President of Ausam, said, "The acquisition complements the Company's existing exploration portfolio with an acreage position that contains in excess of 100 possible drilling locations. The expected drilling program has the potential to add substantively to the Company's value."
Closing of the purchase is subject to customary terms and conditions, including, but not limited to, satisfactory due diligence as to title and environmental matters. Closing is also dependent upon the Company securing the necessary financing under terms acceptable to the Company's board of directors. There can be no assurance that such financing can be obtained, or if obtained, obtained under acceptable terms.
Cautions Regarding Forward-Looking Statements
Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact. Forward-looking statements, including those relating to the intersection of formations and any related economic potential from the drilling program, are based upon the opinions, expectations and estimates of management of Ausam as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to risks, uncertainties and other factors that are beyond the control of Ausam including the satisfaction of all conditions precedent with respect to the Acquisition Agreement and receipt of all required approvals. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although Ausam believes that the expectations reflected in the forward-looking statements set out in this press release are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of Ausam contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.
About Ausam
Ausam is a public company engaged in the business of oil and gas exploration and development. Ausam, through its U.S. subsidiary Noram Resources, Inc, has acquired a diverse portfolio of oil and gas leases and prospects in Texas, Louisiana, Mississippi, Alabama and Arkansas. Ausam, through its Australian subsidiary Ausam Resources Pty Ltd., holds interests in permits in Queensland and Victoria. Ausam's growth strategy includes the organic development of its current holdings and selective corporate transactions. The Company trades under the symbol "AZE" on the TSX Venture Exchange.
William M. Hitchcock
Chairman
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Ausam in any jurisdiction. The securities of Ausam which have been registered under the Securities Act of 1933, as amended (the "1933 Act"), are offered only pursuant to the prospectus relating to such offering. The securities of Ausam which have not been registered under the 1933 Act may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the applicable state securities laws.
%SEDAR: 00008979E
Mark G. Avery, President and CEO, mavery@ausamenergy.com, Tel: (832) 678-2200, Fax: (832) 678-2205; Ralph D. Davis, Chief Financial Officer, rdavis@ausamenergy.com; Web site: www.ausamenergy.com
Copyright ? 2008 Canada Newswire Ltd. All Rights Reserved.
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