Morgan Creek Energy to acquire additional lease acreage
  by: OilOnline
  Tuesday, October 10, 2006

Morgan Creek Energy Corp. has entered into an agreement to acquire a further 385 acres of oil and gas targeted development leases in the Little Cedar Creek Field located in Conecuh County, Alabama from U.S. Gas Systems Inc. of Mississippi for $385,000 cash and $385,000 in restricted stock in the capital of the Company priced at the 30-day weighted average preceding the date of closing.

The new acreage is in addition to the Company's 103 acres in the Little Cedar Creek Field under acquisition first announced last month and forms part of the 150 acres announced on September 21, 2006. The new 5-year lease acreage is part of the Company's expansion plans into the Little Cedar Creek Field and the forging of a stronger working affiliation with U.S. Gas Systems Inc. Further leases are planned with the Morgan Creek Energy's mandate to expand its acreage in the Little Cedar Creek Field. The Company will own acreage in four separate sections and bring the Company's acreage position in the field to approximately 488 acres. Wells can be drilled on 160-acre spacing units.

Located in the Little Cedar Creek Field in Conecuh County, Alabama, the acreage sits atop a Smackover Limestone gas drive reservoir located at approximately 11,500 and 11,880 feet in depth. Management estimates the field has produced 2.4MM barrels of oil and 2 BCF of casinghead gas. The bulk of the production has been produced in the last four years. This field has yielded only one dry hole to date.