VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/13 -- CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX VENTURE: CTI) is pleased to announce that drilling has begun on its property in the Faust area of north central Alberta (the "Faust Property"). The Faust Property is located just north of the prolific Swan Hills oil field and west of Black Pearl Resources Inc.'s Mooney Pool producing oil property and south of the Town of Slave Lake. The lands forming the Faust Property are Crown leases with varying expiry dates. The Faust Property comprises approximately 18,600 net acres (approximately 30 sections) of lands of interest that are not subject to expiry for the next 3 years and a further 3,840 net acres (6 contiguous sections) of lands of special interest that have been continued through to the end of April 2013.
The drilling currently being undertaken is not only to maintain the 6 sections of land of special interest in good standing, but also to test for the presence of the "Bluesky Sand sweet oil zone" which has been identified as an economic oil producing zone in the Mooney producing oil property located to the east of the Faust Property.
The well configuration is a vertical well with a planned drill depth of 955 metres and is being conducted along a line of 2D seismic located on the eastern half of Legal Subdivision (LSD) 9, Section 4, Township 72, Range 10, West of the 5th Meridian. At the date of this news release, the drill has reached a depth of 500 metres.
The Faust Property was acquired by CaiTerra on December 14, 2012 for a total cash payment of $2,500,000. On February 4, 2013, CaiTerra sold a 25% interest in the Faust Property to Western Lion Resources Ltd. ("Western Lion") for a cash payment of $1,000,000. At the time of spudding the drill, Western Lion had not exercised its option to buy an additional 25% interest in the Faust Property and, as a result, Western Lion maintains a 25% interest and CaiTerra maintains a 75% interest in the Faust Property. Western Lion has provided CaiTerra with its 25% share of the costs for drilling the well.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning the plans and timing for the Company's drilling program. The Company cautions that there are no assurances or guarantees that the transaction will be completed as proposed or at all.
Although the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
CaiTerra International Energy Corporation
Chief Executive Officer and Director
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