CALGARY, ALBERTA -- (Marketwired) -- 04/18/13 -- Amarok Energy Inc. ("Amarok" or the "Corporation") (TSX VENTURE: AMR) announces the release of its financial results for the three months and year ended December 31, 2012.
The Corporation's financial statements and management's discussion and analysis for the three months and year ended December 31, 2012 will be available on SEDAR at www.sedar.com.
Amarok entered into a farmout and participation agreement dated September 14, 2011 whereunder Amarok agreed to participate in a three (3) well drilling program which, collectively, comprised the Qualifying Transaction of Amarok (the "Qualifying Transaction") in accordance with the requirements of the TSX Venture Exchange (the "TSXV"). Amarok participated in the first well, being the Stolberg 15- 19 well, which was drilled during 2012. The Stolberg 15-19 well was placed on production in August 2012 and continues to produce at a rate of approximately 5 barrels per day of light sweet oil, net to Amarok. Amarok was recently advised by the farmor that, primarily due to persistently poor gas prices and a project burdened with farmin economics, that the remaining 2 wells included in the Qualifying Transaction, both located in the Ricinus area, Alberta, will not be drilled at this time. The TSXV has advised Amarok that, in view of the foregoing, Amarok is no longer subject to the requirements relating to further work commitments in respect of its Qualifying Transaction.
Amarok has a 5% carried interest in the first two wells drilled in the Llanos 21 block in Colombia. Two exploration wells were drilled to total depth on this block, just prior to the onset of the seasonal rains. Each well was logged and cased after encountering hydrocarbon indicators while drilling the intended Cretaceous structured targets. The Corporation expects that the operator will continue with completions and testing, despite weather conditions, with results expected to be available within the next two to three months.
In the United States Amarok currently has approximately 6,234 net and gross acres of leases held in Montana and approximately 7 miles of 2D seismic has been acquired. The raw seismic was been processed at a third party geophysical company in Calgary, Alberta and is currently being interpreted by Amarok. It is anticipated that Amarok will spud a well in the Laurel area, Montana in Q3 2013, subject to conducting a satisfactory engineering design review.
The Corporation has entered into an agreement with a US based oil and gas operator covering a block of foothills land located in Montana. The agreement includes approximately 67,000 gross acres of land with an option to drill a well thereon in order to earn 75% of the operator's interest (estimated to be a 50% working interest in the block) in four contiguous sections of land, with a rolling option to drill further wells on the same basis. Oil has been tested previously from the structured reservoirs and the area is partially covered by more than 100 square miles of 3D seismic. Technical due diligence is currently underway and the Corporation is entitled to, but not obligated to drill an initial well by August 2013.
"The recently completed equity financing, including the exercise of the overallotment option thereunder, has provided Amarok with a strong balance sheet with which to develop its existing properties and to evaluate other opportunities for growth" stated Dale Swanson, President and CEO of Amarok.
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