| ||March 07, 2006|
MBA Signs Deal To Acquire Producing Gas Field In Utah
| ||March 7, 2006, (Vancouver, British Columbia) MBA Resources Corp. (TSX-V: MBA) announced today that it has entered into an agreement to purchase a 50% interest in a producing gas field in Carbon County, Utah known as the Gordon Creek Project. The Project will be jointly acquired with Fellows Energy Ltd. of Broomfield, Colorado and Fellows and MBA will form a joint venture company to operate the project. The field comprises 5,953 gross acres (4,879 net acres) with three gas wells currently producing approximately 20 million cubic feet of natural gas per month as well as five shut in wells, 3 of which have previously produced. Production is derived from the Ferron Sandstone formation and the field has potential for 20 additional well sites on 160 acre spacing on the undeveloped acreage. The Gordon Creek Project includes a pipeline and compression facility and the gas is marketed into the adjacent pipeline operated by Questar Gas Resources. The property is adjacent to the very successful Drunkards Wash field originally developed by River Gas Corp. and currently operated by ConocoPhillips.|
The management of the joint venture company will include former key River Gas personnel who participated in the development of Drunkards Wash where they significantly increased existing production as well as substantially expanding production in both the Ferron Sandstone and in the coal bed methane seams. The coal seams that have been prolific producers at Drunkards Wash have not yet been exploited in the Gordon's Creek Project. MBA and Fellows will immediately undertake to increase production in the existing wells and thereafter drill up to 20 additional wells on the acreage being acquired. The project is the subject of a favourable engineering report prepared by Sproule Associates of Denver.
Terms of the purchase agreement have been held confidential pending closing, scheduled for on or before March 13, 2006. MBA will finance the acquisition through a convertible debenture currently being negotiated, as well as through project financing.
"This project represents an opportunity for MBA to generate immediate production and cash flow, while at the same time offering tremendous upside potential," said MBA President Cameron White. "The opportunity to acquire a significant, stable and long term production stream will take our company to the next plateau of growth. It will also complement our existing oil and gas exploration prospects in the Stoney Creek area of New Brunswick as well as other potential prospects that we are targeting."
For more information, contact Mr. Cam White at 604-707-0373.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.
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