Donnycreek Energy Inc. has entered into an arm's length definitive arrangement agreement (the "Arrangement Agreement") with Contact Exploration Inc. (Contact) whereby Contact and Donnycreek will merge (the "Merger") to form a new, amalgamated corporation to be named "Kicking Horse Energy Inc." (Kicking Horse). The Merger will consolidate the companies' interests in the Deep Basin including their working interests (WI) in their Kakwa (East), Albertaproperty (the "Kakwa Property").
Donnycreek holds a 50% WI in 16.75 gross sections at the Kakwa Property. Contact is the 25% WI operator of the Kakwa Property. Based on current WI production, Kicking Horse will have approximately 3,000 BOE/d of Montneyproduction from the Kakwa Property (52% natural gas, 48% condensate and other natural gas liquids).