CALGARY, ALBERTA -- (Marketwire) -- 01/21/13 -- Bayshore Petroleum Corp. (TSX VENTURE: BSH) ("Bayshore" or the "Corporation") is pleased to announce it has entered into a Letter of Intent (the "LOI") with a second private oil & gas company operating in Meota, Saskatchewan, area. Under the LOI, Bayshore can earn up to a 50% working interest in 1.5 sections (960 acres) of oil & gas lease acreage. There are currently six vertical oil wells drilled and completed in the Upper Mannville formation and most wells encountered more than 6 meters of heavy oil bearing formation. Under the LOI, Bayshore will earn the working interest by drilling up to two horizontal wells and developing the property to supply heavy oil to the previously announced upgrader that Bayshore intends to construct in Meota area. Horizontal well production on lands adjacent to the lands that Bayshore may earn into is as high as 150 barrels oil per day.
The LOI contemplates the execution of a formal farm-in and earning agreement by March 1, 2013 following the finalization of the terms and conditions. Bayshore will have until July 31, 2013 to finish drilling of the two earning horizontal wells.
Bayshore is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Common Shares are listed on the TSX Venture Exchange under the trading symbol "BSH".
Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Bayshore Petroleum Corp.
President and Chief Executive Officer
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