ENP Newswire -
Release date- 12052014 -
Red Earth/Otter Acquisition
The properties subject to the Transaction consist of working interests in a total of 11.38 sections of land comprised of 2.125 sections in Red Earth that has nine producing oil wells and one standing oil well in which Georox acquired a 100% working interest subject to reduction, in most instances, to a 97% working interest after payout. In addition, Georox acquired the well bores to three abandoned wells in which it will hold a 100% working interest in one and a 50% working interest in the two others. In Otter, located 25 kms to the NW of Red Earth, Georox acquired a 100% working interests in 9.25 sections of prospective land.
Georox will become the operator for all wells except two of the abandoned wells.
Georox believes that there is an opportunity to drill two additional wells at Red Earth and potential beyond primary recovery through the implementation of water flood/pressure support to significantly extend the life and recoverable reserves from the Red Earth properties. Georox is currently reviewing and assessing the Red Earth properties in detail to identify opportunities to enhance production before initiating new operations.
The purchase price for the Transaction was approximately
In connection with the Transaction, Georox utilized
Non-Brokered Private Placement
The Corporation completed a private placement (the 'Private Placement') of 8,450,923 units of the Corporation ('Units') at a price of
All securities in the Private Placement will be subject to a four month hold period from closing. In connection with the Private Placement, agents will be paid an aggregate of
The proceeds of the Private Placement were used in connection with closing the Transaction.
After giving effect to Private Placement, Georox now has 35,597,108 Common Shares outstanding on a basic basis.
Directors or officers subscribed for 3,896,154 (46.1%) of the Private Placement.
Georox estimates that its current production, following the Transaction, is approximately 265 boep/d comprised of 175 boe/d of light oil, 73 boe/d heavy oil and 17 boe/d of natural gas. Georox's estimated production is 66% light oil & ngls, 28% heavy oil, and 6% solution gas.
Georox is a Canadian natural resource company engaged in the acquisition, exploration and development of oil and gas properties in
President and Chief Executive Officer
Tel: (250) 712-2213
Fax: (250) 712-2215
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as 'will', 'may', 'should', 'anticipate', 'expects' and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. More particularly, it contains forward-looking statements concerning: (i) production (ii) planned drilling, development and waterflood activities, (iii) the potential number of drilling locations at certain of the Transactions properties, and (v) potential development opportunities associated with the Transaction.
Although Georox believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Georox can give no assurance that they will prove to be correct. Since forward-looking statements 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, risks associated with the oil and gas industry in general (e.g., 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 estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information.
Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Most Popular Stories
- National Retail Federation Reduces Sales Forecast
- Long-term Strengths Emerge in U.S. Economy
- Xavier Gutierrez Appointed to Bank Board
- Honda' s Accord Plug-in Hybrid Is a Fuel Miser
- Naya Rivera and Ryan Dorsey Are Married
- Amazon Fire Phone Improves on Familiar: Review
- Self-Induced Abortions Rise After Texas Closes Clinics
- Weekly Jobless Claims Drop to Lowest Level in 8 Years
- Marco Rubio Swings Back to the Right
- Comic-Con Festival Kicks Off in San Diego