CHATHAM, ONTARIO -- (Marketwire) -- 03/01/13 -- PetroShale Inc. (TSX VENTURE: PSH) ("PetroShale" or the "Company") announces the filing of its: (i) unaudited interim financial statements for the quarter ending December 31, 2012; and (ii) the corresponding Management's Discussion and Analysis. Electronic copies of these documents may be obtained on PetroShale's SEDAR profile at www.sedar.com. To the extent investors do not have access to SEDAR, copies of the materials can be obtained on request without charge by contacting PetroShale.
During the second quarter, PetroShale continued to implement its strategy around the Mondak play through further evaluation with Slawson Exploration and the implementation of a strategic acquisition program. As a result, PetroShale established positive EBITDA in October 2012, in the Company's eighth month after start up. Working interest production in the second quarter was 11,423 boe, an increase over the first quarter of 76%.
Operations in the second quarter included the evaluation of data from wells drilled in the shale trend, in and adjacent to Mondak. Slawson Exploration kept one rig active in the trend with a focus on completion techniques to increase the deliverability of the wells. Industry has been testing longer laterals with more and larger fracture stimulations adjacent to Mondak. Mondak is following this trend. Slawson Exploration has been experimenting with a variety of completion techniques. The Dirk well is currently on flow back testing and the Company expects to complete two additional wells in the third quarter.
The Company plans to shoot a 3D seismic program in Mondak this spring to further delineate Red River prospects. The Company also expects to commence drilling on its North Dakota land in the spring, which is the east side of the Mondak play adjacent to the prolific unstimulated wells drilled by Slawson Exploration from 1994 to 2007.
PetroShale will continue to implement our strategy of exploiting the assets in our inventory with a focus of adding strategic acquisitions resulting in a very active 2013. The relationship with Slawson Exploration is also providing the Company with unique opportunities for acquisitions in the Williston Bakken, which it intends to exploit as financial market conditions permit.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. PetroShale does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Trading in the securities of PetroShale Inc. should be considered highly speculative. 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.
PetroShale (US), Inc.
John Fair, President
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