Message #3 From:
Stock News Bot Date: December 8, 2006 04:00:00 AM
COGC News California Oil & Gas Corp. - Corporate Update
CALGARY, Alberta--(BUSINESS WIRE)--California Oil & Gas Corp. (OTCBB: COGC) is a junior oil and gas
exploration company with agreements for projects in California and
Louisiana in the United States, and Chile, South America. It intends to
use the proceeds of the recently announced private placement of
$1,000,000 to advance these projects and agreements.
In California, work is underway to acquire leases over areas considered
prospective that will form the core of the Company’s
planned exploration program. Arrangements for 3-D seismic programs on
leases acquired earlier this year are currently being finalized.
In Louisiana, the Company has reached agreement to acquire an additional
10% working interest (subject to a 1% overriding royalty) in the Krotz
Springs project, increasing its working interest to 25%. A drilling rig
has been tentatively scheduled to drill a directional well to test the
Cockfield Sand at 10,700 feet (TVD). The target was identified by 3-D
seismic and is mapped updip from a well which commenced production at 8
million cubic feet of gas and 277 barrels of condensate per day, and
which produced 10 BCF of gas and 348,000 barrels of condensate before
production ceased because of bottom water encroachment. The proposed
well is designed to target the apex of the productive zone,
significantly higher than the previous well. The well is anticipated to
spud in January 2007 and if successful, production can be tied into
existing facilities and pipelines.
Elsewhere in Louisiana, leasing work continues in preparation for a
planned 3-D seismic program.
In South America, the Company’s local partner
has encountered delays in finalizing an agreement with the Chilean
government for the Pica North and Pica South blocks in Tamarugal Basin.
It is now anticipated that the initial well on the Pica North concession
will spud in the first quarter of 2007. The Company has an agreement to
earn 50% of the Pica North concession by participating in the drilling
of two exploration wells. The target is a large natural gas reservoir in
an area with markets for natural gas, but which is deficient in supply.
On behalf of the Board
John G. F. McLeod, President
Forward Looking Statement
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties.
Words such as "expects", "intends", "plans", "may", "could", "should",
"anticipates", "likely", "believes" and words of similar import also
identify forward-looking statements. Forward-looking statements are
based on current facts and analysis and on forecasts of future results,
estimates of amounts not yet determined and assumptions of management.
Forward-looking statements in this news release include statements about
the Company’s belief that it can advance its
projects overall, that it can acquire leases in California that will
form the core of the Company’s planned
exploration program, that if the directional well proposed for the
Cockfield Sand is drilled, it will spud in January, 2007 and be put into
production and that the production can be tied into existing facilities,
that leasing work elsewhere in Louisiana will continue in preparation
for a planned 3-D seismic program, that the initial well planned for the
Pica North concession will spud in the first quarter of 2007 and that
the Company will be able to participate in the drilling of two
exploration wells at the Pica North concession. The Company’s
actual results may differ materially from those anticipated in these
forward looking statements due to any of a number of factors beyond the
Company's control. These risks and uncertainties include, among other
things, the risks that are inherent in oil and gas exploration and
otherwise inherent in the Company’s
operations. These and other risks are described in the Company's Annual
Report on Form 10-KSB and other filings with the Securities and Exchange
Commission, which can be viewed at www.sec.gov.
