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Westmont Divests Canadian Gold Mining Properties to Acquire Additional Oil and Natural Gas Leaseholds in the Marcellus Shale Region
Press Release Source: Westmont Resources, Inc. On Wednesday February 16, 2011, 4:02 pm EST
BELLEVUE, WA--(Marketwire - 02/16/11) - Westmont Resources Inc. (Pinksheets:WMNS - News) (Pinksheets:WMNS - News) today announced Westmont Resources, Inc., an independent oil and gas production company, announced today that it had finalized agreements to sell properties in British Columbia to Domestic Energy Corporation. The properties being sold are exploration lands that are located in known gold reserve regions.
The divestment by the company will allow it to refocus its finances and operations on oil and natural gas in the Marcellus and Chattanooga Shale play. The proceeds from this sale will allow Westmont to invest heavily in this massive shale play that has revolutionized the North American natural gas business.
Of the disposed-of properties and of the transactions, Westmont Chairman Dr. Bruce Fischer said: "Although these are excellent assets with a great future, they can't effectively compete for capital within our emerging strategic asset mix. The result is that these sales will help us focus on, finance and build our growing, higher margin and more profitable North American shale oil and gas business."
Using new technologies, in particular (Eco-Recovery4) which is proprietary to Westmont now enables it to more profitably tap oil and natural gas reserves own by the company. Without the benefit of these technologies the previous operators of these plays were unable to economically exploit the reserves. Preliminary estimates indicate that the value of the reserves these various shale plays could potentially reach in excess of $270 Million. This is based on the company's review of other assessments and production in the immediate areas. The company is finalizing confirmation of the true bankable reserves by a review conducted by a recognized independent oil industry geologist.
Westmont's portfolio, includes a significant Tennessee Chattanooga Shale play, joint ventures developing two significant blocks in the Marcellus Shale region including, 1,800 lease acres in Western Pennsylvania and 1,650 lease acres in West Virginia. "This is a strategic step toward extending our Marcellus natural resources operations and it's the right time because recent advances in our technology and continued enhancements will improve margins and profitability in our shale oil and gas properties," continued Fischer.
About Westmont Resources
Westmont Resources is an independent natural resource and development company headquartered in Bellevue, Washington, with principal operations in the United State. Westmont deploys the latest systems and methods, principally its own proprietary technologies, to expand the production of oil and gas in the face of ever-rising demand. Westmont's strategy of obtaining peak efficiency and production by unlocking the reserves from existing assets becomes increasingly profitable. Westmont Resources is committed to significant growth as it pursues its strategy to combine and consolidate additional assets and companies in the oil and natural gas production and services sectors. For more information about Westmont Resources Inc, visit the company's website at Westmont Resources Flash Intro
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