Business
Georox to Acquire Producing Oil and Gas Interests in Red Earth/Otter, Alberta and Initiates Non?Brokered Private Placement
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ...
About this update from Prospera Energy Inc.
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nKELOWNA, BC, April 21, 2014 /CNW/ - Georox Resources Inc. (\"Georox\" or the \"Corporation\") (GXR:TSX-V) (OF6A:FRA) is pleased to announce that it has entered into a letter of intent to acquire certain high working interest producing oil and gas interests in Red Earth, Alberta, approximately 106 kms north of Lesser Slave Lake (320 kms north west of Edmonton) from an arm's‑length corporation (the \"Red Earth/Otter Acquisition\" or the \"Transaction\") and to initiate a non‑brokered private placement.\n\nRed Earth/Otter Acquisition\n\nThe 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 will acquire a 100% working interest subject to reduction, in most instances, to a 97% working interest after payout.  In addition, Georox will acquire 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 will acquire a 100% working interests in 9.25 sections of prospective land.\n\nGeorox will become the operator for all wells except two of the abandoned wells.\n\nAt December 31, 2013, production from the properties subject to the Transaction was approximately 113 boe per day (109 barrels of oil and natural gas liquids and 16 mcf/d of natural gas).  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.\n\nThe purchase price for the Red Earth/Otter Acquisition is approximately $6,100,000 with a proposed effective date of April 1, 2014. The Transaction is expected to close the second week of May.  \n\nThe Transaction is subject to a number of customary conditions, completion of satisfactory due diligence and receipt of regulatory approvals(including TSX Venture Exchange approval), as well as confirmation of bank financing.  There is no assurance that the Transaction will be comp...