CALGARY, ALBERTA — (Marketwire) — 08/22/11 — TAMM Oil and Gas Corp. (“TAMM”) (OTCBB: TAMO) is pleased to announce they have reviewed and approved the Manning heavy oil work program proposed by their farm-in partner.
On March 15, 2011 Cougar Oil and Gas Canada Inc. (“COUGF”) entered into a multi-phase farm-in agreement with TAMM to define and develop TAMM–s 47 section Manning area heavy oil prospect. The first phase of the farm-in consists of COUGF performing a $2.5million work program to earn a 30% working interest in the heavy oil prospect. One of the requirements of the farm-in was for COUGF to present for TAMM–s review and approval a development plan for the first $2.5million work program. TAMM management and Board of Directors has reviewed the work program and provided COUGF with the approval to continue.
This work program will be done at no cost and no risk to TAMM and will dramatically increase the value of the Manning heavy oil project. The work program proposed by COUGF will focus on defining the Elkton and Debolt heavy oil prospects and will consist of the following operations;
On June 8, 2011 TAMM announced an updated Prospective Resource report and 4 section feasibility study had been completed by Chapman Petroleum Engineering Ltd. (Chapman). Please download and review the entire Chapman report from the TAMM website (). The Chapman report updated the Petroleum Initially In Place (“PIIP”) to reflect the revised guidelines under NI – 51-101 section 5.9 for the 47 sections that TAMM holds in the Manning Heavy Oil Area. The report also evaluated a typical 4 section block for a thermal development to evaluate the feasibility of an economic development of the overall properties. The following is an excerpt from the introduction letter and the project synopsis prepared by Chapman;
“An economic analysis has been performed for the company–s interest position. Our analysis and the values presented in this report reflect the typical exploitation of resources on only an arbitrary four section block, which is a small portion of the company–s total land holdings covering the heavy oil accumulation.”
“Based on our analysis, after consideration of risk, we have concluded that the potential of this project is of sufficient merit to justify the work program being proposed and we therefore recommend and support the company–s participation.”
“The economic and risk analysis justifying the participation in this project is presented in the Discussion of the report and a summary of the “before and after risk” values for the typical four section development block evaluated herein is presented below:”
“An equivalent of 2011 price of $69.47 per STB (barrel) of heavy oil was utilized for this resource evaluation, reflecting a -$5 per STB quality adjustment to posted Alberta heavy oil.”
Entering into the farm-in agreement with COUGF allows TAMM to utilize the results to the maximum ability without having to raise capital through debt or equity at this time. COUGF has agreed to operate the Manning heavy oil prospect which also relieves TAMM of the day to day responsibility and liability that would be placed on the operator. TAMM is also studying other heavy oil carbonate projects that are ongoing throughout Alberta and the rest of the world to continues to increase development efficiency.
Additional updates will be provided as information becomes available.
Further information on TAMM and the TAMM projects can be found on the website at: .
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS AND RISKS
Some of the statements in this press release are forward-looking statements and are based on current expectations, assumptions, and estimates. Words and phrases such as “believes”, “expect, anticipate”, are intended to identify forward-looking statements. Forward-looking statements carry certain risks regarding an assumed set of economic conditions and courses of action, including: (a) whether we will have sufficient financial resources to continue to meet our operational goals and future plans; and (b) the Report and its findings although completed in compliance with Canadian NI- 51-101 standards, were not necessarily prepared in conformity with SEC disclosure principals or guidelines. There is a significant risk that actual material results will vary from projected results. No information provided in this press release should be construed as a representation or indication in any manner whatsoever of the present or future value of the Company or its common stock. Readers of information contained in this press release should carefully review the Company–s filings with the Securities and Exchange Commission that contain important information regarding the Company–s financial results, its future plans, and their limitations, and the risks involved with the Company–s operations. The Company disclaims any responsibility to update forward-looking statements made herein.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms, such as prospective resource or Original Oil in Place (OOIP) or Petroleum Initially In Place (PIIP), that the SEC–s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10K. You can also obtain this form from the SEC by calling 1-800-SEC-0330. Additional information may be found at the following web site:
Contacts:
TAMM Oil and Gas Corp.
(403) 513-2663