CALGARY, ALBERTA -- (Marketwired) -- 06/11/13 -- Relentless Resources Ltd. (TSX VENTURE: RRL) ("Relentless" or the "Company") announced today that the Company has entered into an asset exchange agreement (the "Agreement") with an arm's length Calgary-based private oil and gas company ("Privateco") to assign all of the Company's petroleum and natural gas interests in south-western Saskatchewan in exchange for Privateco's interests in producing and undeveloped petroleum and natural gas properties located in various areas throughout Alberta and a cash payment of $200,000.00 (the "Transaction"). The Transaction is expected to close on or about June 20, 2013, with an effective date of May 1, 2013, and is subject to regulatory and shareholder approvals.
The petroleum and natural gas assets contemplated for exchange under the Agreement are all of Relentless' net interests in 3,002 net acres of petroleum and natural gas rights located in the Loverna area of south-western Saskatchewan (the "Relentless Assets"), and (i) all of Privateco's interests in 10,842 net acres of petroleum and natural gas interests located in the Willesden Green area of Alberta, (ii) all of Privateco's interests in 26,363 net acres of undeveloped petroleum and natural gas interests located in the Gilby area of Alberta, (iii) all of Privateco's interests in 4,798 net acres of undeveloped petroleum and natural gas interests located in the Killam area of Alberta, (iv) all of Privateco's interests in 4,000 net acres of undeveloped petroleum and natural gas interests located in the Pine Creek area of Alberta, (v) all of Privateco's interests in 3,200 net acres of undeveloped petroleum and natural gas interests located in the Wembly area of Alberta, and (vi) all of Privateco's interests in 4,520, net acres of undeveloped petroleum and natural gas interests located in various other areas of Alberta (collectively, the petroleum and natural gas interests of Privateco are referred to as the "Privateco Assets"). The Relentless Assets include 4 (3.02 net) producing oil and natural gas wells, representing an average net April 2013 production rate of approximately 25 boes/d, while the Privateco Assets include 5.0 (3.91 net) producing oil and natural gas wells and 8 suspended wells, representing an average net April 2013 production rate of approximately 50 boes/d, which includes 30 bbls/d of crude oil production. All Privateco's oil and natural gas production comes from the Willesden Green area of Alberta (the "Willesden Green Area").
The independent engineering firm of Insite Petroleum Consultants Ltd. ("Insite") prepared a report (the "InSite Report") evaluating the crude oil, natural gas and natural gas liquids ("NGLs") interests of Privateco in the Willesden Green Area, with an effective date of December 31, 2012 and a preparation date of March 8, 2013. The tables below summarize Privateco's crude oil, natural gas and NGLs reserves in the Willesden Green Area and the net present value of future net revenue attributable to such reserves, as evaluated by InSite, based on forecast prices and costs assumptions. The information set forth below is prepared in accordance with standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") adopted by the Canadian Securities Administrators and the COGE Handbook.
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