Unitech Energy announces update and private placement

About this update from Decimus Oil Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, Nov. 8 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV:\nURX) is pleased to announce that it has negotiated the right to earn an\nadditional approximately 20% working interest in its Keg River prospect in NE\nBritish Columbia. This working interest is in addition to Unitech's existing\nworking interest of approximately 7.9% (depending on the final costs of\ndrilling). By earning the additional working interest, Unitech could achieve a\ncombined working interest of up to 28% in this high impact prospect. 3-D\nseismic interpretation indicates a structure believed to be similar to the\nnearby YoYo and Sierra fields, which have produced more that 2 TCF combined,\nand where numerous single wells have produced in excess of 40 BCF. The test\nwell (the "Well") was drilled and cased in the spring of 2007 to within\napproximately 50 metres of the target Keg River formation. The Well site is\naccessible by an all-season road and a pipeline, with capacity, exists within\nless than 100 metres of the Well location. After the initial stage of\ndrilling, certain partners were unable to contribute their respective share of\nthe costs and this has caused the delay of the final drillout and completion.\nUnitech has taken advantage of the opportunity to potentially increase its\nworking interest on a very favourable basis.\n\n\nIn order to fund the drillout and completion of the Well and earn the\nadditional working interest, Unitech has structured an innovative financial\ninstrument designed to limit share dilution exposure while at the same time\nincreasing the upside opportunity to investors. Unitech proposes to conduct a\nnon-brokered private placement of up to 15,000,000 special warrants issued on\na flow-through basis ("Special Warrants") at a price of $0.09 per Special\nWarrant for gross proceeds of $1,350,000. The Special Warrants are convertible\ninto a variable number of Unitech common shares dependent on a reserves and\nvaluation of the Well (the "Valuation") prepared by an independent consulting\nengineering company. The preparation of the Valuation and the conversion of\nthe Special Warrants into Unitech common shares must occur within 45 days of\ncompletion of the Well in order to allow for certain provisions in the\nprospect land options. As the Valuation increases, so ...

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