Business
49 North Resources Inc. Announces Closing of Kindersley Viking Asset Sale
TSX Venture Exchange Symbol FNR SASKATOON, Nov. 9, 2012 /CNW/ - Allstar Energy Limi...
About this update from 49 North Resources Inc
[{"type":"text","content":"\n\n\n\n\n\nTSX Venture Exchange Symbol FNR\n\n\nSASKATOON, Nov. 9, 2012 /CNW/ - Allstar Energy Limited (\"Allstar\"), a\n 100% owned subsidiary of 49 North Resources Inc. (\"49 North\") (TSXV:\n FNR), today closed the previously announced sale of its Kindersley\n Viking assets for aggregate cash proceeds (after closing adjustments)\n of approximately $24.1 million. The proceeds will be allocated amongst\n the joint venture partners in accordance with their working interests,\n with the balance used to eliminate the indebtedness under Allstar's\n outstanding credit facility and to provide drilling capital for\n Allstar's Riverside and Red Pheasant properties. It is the company's\n intention to replace the production that has been sold in this\n transaction within the next fiscal year.\n\n\nThis transaction is the culmination of 2.5 years of work in the\n Kindersley Viking play and is another example of execution on the\n business model of 49 North.  Allstar retains a 100% interest in\n approximately 52,000 acres of heavy oil land with existing production.\n\n\nThe Riverside play encompasses 100% interest in 31,360 acres of multi\n zone (Basal Manville and Detrital zones) heavy oil play and Viking gas\n play.  The Company has successfully recompleted 2 wells that are on\n production and flowing approximately 100 barrels per day combined.  The\n Company has recently completed an extensive 20 sq.km. 3D seismic\n program on the property (see the press release of October 17, 2012) and\n plans to initiate a new drill program at Riverside based on the\n interpreted data before year end.  Additionally, the Company acquired\n 2.6 sq km of 3D seismic which has yielded 5 additional development well\n targets in the vicinity of the 2 producing wells.\n\n\nThe Red Pheasant lands consist of 100% interest in Indian Oil and Gas\n Canada (IOGC) agreements covering roughly 20,319 acres.  The Red\n Pheasant IOGC lands have proven to contain Manville heavy oil that the\n Company has drilled a total of 8 wells into.  3D seismic at Red\n Pheasant has been interpreted and identified a promising well\n inventory.  Future programs will look to drill development wells into\n the seismic based locations that will help further expand the currently\n known reservoirs.\n\n\n49 North is a Saskatchewan focused resource invest...