Business
Georox Acquires Producing Oil and Gas Interests in Red Earth/Otter, Alberta and Completes Non-Brokered Private Placement
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATE...
About this update from Prospera Energy Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES/\n\n\nKELOWNA, BC, May 13, 2014 /CNW/ - Georox Resources Inc. (\"Georox\" or the \"Corporation\") (GXR:TSX-V; OF6A:FRA) has completed the previously announced\n (April 21, 2014 press release) acquisition of certain high working\n interest producing oil and gas interests in Red Earth, Alberta,\n approximately 106 kms north of Lesser Slave Lake (320 kms north west of\n Edmonton) from an arm's-length corporation (the \"Red Earth/Otter Acquisition\" or the \"Transaction\") and has also completed its previously announced a non-brokered\n private placement.\n\n\nRed Earth/Otter Acquisition\n\n\nThe properties subject to the Transaction consist of working interests\n in a total of 11.38 sections of land comprised of 2.125 sections in Red\n Earth that has nine producing oil wells and one standing oil well in\n which Georox acquired a 100% working interest subject to reduction, in\n most instances, to a 97% working interest after payout.  In addition,\n Georox acquired the well bores to three abandoned wells in which it\n will hold a 100% working interest in one and a 50% working interest in\n the two others.  In Otter, located 25 kms to the NW of Red Earth,\n Georox acquired a 100% working interests in 9.25 sections of\n prospective land.\n\n\nGeorox will become the operator for all wells except two of the\n abandoned wells.\n\n\nGeorox believes that there is an opportunity to drill two additional\n wells at Red Earth and potential beyond primary recovery through the\n implementation of water flood/pressure support to significantly extend\n the life and recoverable reserves from the Red Earth properties. \n Georox is currently reviewing and assessing the Red Earth properties in\n detail to identify opportunities to enhance production before\n initiating new operations.\n\n\nThe purchase price for the Transaction was approximately $6,100,000 with\n an effective date of April 1, 2014.  The acquisition metrics work out\n to a purchase price of $39,900 per boepd (Proved + Probable) and $20.38\n per boe's (Proved + Probable) for this light oil property. Reserve life\n index is 16.8 years for Proved Developed Producing reserves and 24.8\n years for Proved + Probable reserves.\n\n\nSproule, independent reservoir engineers...