Cougar Oil and Gas Canada (COUGF.OB) To Drill at Keg River

Cougar Oil and Gas Canada, Inc. reported after the closing bell yesterday that a multi-well drill program is being scheduled for the first quarter of 2011 at the Keg River light oil play in Cougar’s Trout Core area in Alberta, Canada.

Moving forward from this date, the permitting process and all other preparations to begin drilling will take approximately three months, with the commencement of drilling slated for February, provided all financing is arranged. The drill program itself will only take 30 days and will be conducted on leases that are an 85% working interest of Cougar. Five targets have been identified through 3D seismic data and Cougar intends to file for permitting for a three-well program, which include two new wells (one horizontal and one vertical) and the deepening of an existing wellbore to access a new deeper oil formation. The remaining two targets will be drilled at a later date.

The management team at Cougar feels that these prospects have a significant advantage over other active tight oil resource plays because these prospects to not require any type of high-cost completion techniques, which results in a lower find and development cost and quicker payout than many other resource plays.

In the course of Cougars due diligence of the region, it was identified that there are 71 producing oil wells within a four mile radius of their targeted drills, which are produced an average of 164 barrels per day for the first four producing months and, in the overall perspective, have produced an average of a quarter of a million barrels each. Also interesting to note is that most of the wells were drilled in the late 1980’s to early 1990’s, with only six new wells being drilled since 1995.


According to William Tighe, CEO and Chairman of the Board for Cougar, this drilling program is a major step in Cougar’s 2011 goal to be producing 2,000 barrels of oil per day.

More information on Cougar Oil and Gas Canada and its projects can be found on the Company’s website at www.cougaroilandgascanadainc.com.