Admiral Bay Resources Announces Acquisition of Additional Interest in the Thayer Project in Kansas
May 11 2009 - 11:00AM
Marketwired
Admiral Bay Resources, Inc. (TSX VENTURE: ADB) announces today it
has acquired 280 net acres and three wells adjacent to its Thayer
Project for $100,000 (US) from a third party. The wells presently
sell into the Thayer gathering system and are capable of producing
over 80 MMCFGPD and have one proven undeveloped drilling location
based on Company estimates.
Related to its previously announced acquisition of the Thayer
Project, the Company has entered into a swap agreement for 60 MMCFG
per month with a $5.107 swap price at the Southern Star index
beginning June 2009 thru December 2010. The Company also sold calls
on 60 MMCFG per month at $8.00 NYMEX from January 2011 thru April
2012. These new hedges combined with the Company's existing
costless collar for 60 MMCFG per month with a $5.50 floor and $9.00
ceiling at the Southern Star index that run thru March 2010 cover
over 80% of the Company's gross sales proforma for the Thayer
Project acquisition and provide a stabilizing effect to the
Company's near-term cash flow at prices well in excess of the
current spot prices in its market area.
In addition, the company has reduced salaries for all field
staff and middle management by 10% and senior management by 20%
until the market fundamentals improve.
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging
unconventional gas production company focused on the development of
projects in the Cherokee Basin in southeast Kansas and the
Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX
Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned
that any such statements are not guarantees of future performance
and that actual developments or results may vary materially from
those in these "forward-looking statements".
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
Contacts: Admiral Bay Resources Inc. Steven Tedesco President
& C.E.O. (303) 350-1255 (303) 617-8956 (FAX)
stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington
CFO (303) 350-1255 (303) 708-1861 (FAX)
rcarington@admiralbay.com
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