Shale assets acquired in Marcellus-Chattanooga

Westmont Resources Inc. announced the filing of a Current Report on Form 8-K announcing that it has completed the acquisition of 92 wells in the Chattanooga Shale region in the northern tier of Tennessee from Domestic Energy Corporation.

Preliminary estimates indicate that the value of the estimated reserves for these latest 92 wells could potentially reach in excess of US$ 100 million. This is based on the company's review of other assessments and production in the immediate area. The company is finalising confirmation of the true bankable reserves by a review conducted by a recognised independent oil industry geologist.

Westmont's portfolio, in addition to this most recent acquisition in the Tennessee Chattanooga Shale region, includes joint ventures developing two significant blocks in the Marcellus Shale region including, 1800 lease acres in Western Pennsylvania and 1650 lease acres in West Virginia. "Our Tennessee assets are an excellent fit with our existing core areas and will expand our portfolio, which is balanced in terms of geography and geology," said Glenn McQuiston, Westmont's President. "This transaction is similar to our earlier strategic steps, bringing near-term production and cash flow as well as long-term upside potential with identified exploration opportunities.

"This is a strategic step and a natural extension into the Chattanooga. We have considered extending our Marcellus natural resources operations into the Chattanooga region for some time and this acquisition provides a significant beachhead for growth in the region and complements our existing strengths in both West Virginia and Pennsylvania. It's the right time because recent advances in seismic technology and continued enhancements in facilities design have reduced the risks in one of the world's oldest basins which is now showing significant renewed potential," McQuiston said.

Read the article online at: https://www.worldpipelines.com/business-news/09022011/shale_assets_acquired_in_marcellus_chattanooga/