Contact acquires Columbia Natural ResourcesCALGARY, ALBERTA--(CCNMatthews - Nov. 20, 2006)
Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce the acquisition of all of the issued and outstanding shares of Columbia Natural Resources Canada Limited ("CNR"), a private company. The consideration paid was a combination of cash and assumption of liabilities.
CNR owns oil and gas rights over approximately 90,000 acres located in New Brunswick, in close proximity to Contact\'s Stoney Creek project. The CNR acreage contains several existing well bores with re-completion potential and associated production equipment. CNR\'s assets also include a regional aeromag survey, 2-D seismic surveys and additional geological and geophysical information relating to this region which is also Contacts focus of operations. CNR has significant unused tax losses.
The complimentary nature of CNR\'s New Brunswick oil and gas assets makes it a perfect fit for Contact. Contact intends to evaluate the CNR geological and geophysical information with a view to further exploration of the newly acquired lands.
"This acquisition was a good fit for us strategically," states Terry Brown, President of Contact Exploration, "We have significantly increased our land position in what is one of our core areas, the Stoney Creek region of New Brunswick. We are currently very active in this area and the acquired package including land, data, equipment and tax losses is very attractive to us and came at an opportune time."