Business
Georox Signs Farmout Agreement
Georox Signs Farmout Agreement
About this update from Prospera Energy Inc.
[{"type":"text","content":"\n\n\n\n Jun. 16, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n Georox Resources Inc. ("Georox" or the "Company") (GXR: TSX-V; OF6A: FRA) is pleased to announce that it signed a Farmout Agreement ("Agreement") with a company in the Province of Alberta for the aggregate fixed cost of $220,000. The Agreement will enable the Company to earn a 25% working interest in the Farmout Lands which consist of 160 acres located in the Lloydminster area of Northern Alberta.\nPursuant to the Agreement once Georox completes its obligations by the payment of $220,000, the Farmor shall assign to Georox its earned interest in the Farmout Lands subject to any Crown royalties.\nThe overall plan is to re-enter, re-complete/workover, equip and produce via high volume lift, up to 5 potential Sparky heavy oil wells. Success will eventually lead to infill drilling on a reduced well spacing, which will be determined by recovery per well, followed by the implementation of a water flood. The potential is a gross incremental recovery of 800 M Bbls of oil (Georox's 25% share would be 200 M Bbls of Oil) on the subject lands.\nGeorox's contribution will be used as part of a $440,000 initial work program committed to by the joint venture partners, which includes the re-entering of 2 wells in Phase 1 of the program. Upon successful re-completion and equipping, the well's production will be analyzed and evaluated for 2 months. Phase 2 will include the re-entering of 3 more wells in a similar manner as Phase 1 except one of the wells will be completed as a pressure maintenance water injection well, subject to the approval of a waterflood application by the Energy Resources Conservation Board.\nThis acquisition is an important move in the growth of the company to participate in a low-risk/high-growth potential development opportunity.\n\nCAUTIONARY STATEMENT\n\nNeither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.\nNo stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.\nBOEs may be misleading, particularly if used in isolation....