Result Energy Inc. Announces Sale of Assets

About this update from Route 109 Resources Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, May 6 /CNW/ - Result Energy Inc. ("Result"; TSX-V: RTE) is\npleased to announce it has accepted a cash offer from an arm's length, private\noil and gas company to purchase certain of the Company's conventional oil and\ngas properties which are located in Alberta and Saskatchewan. The offer is\nsubject to typical conditions, including satisfactory due diligence, purchaser\nfinancing and board approvals, the negotiation of a definitive purchase and\nsale agreement, and required regulatory approvals. The anticipated closing\ndate is July 1, 2009.\n\n\nThe sale proceeds (approximately $11.8 million, subject to closing\nadjustments) will be used to extinguish the Company's bank debt and working\ncapital deficiency and to provide funds for ongoing operations. This\ndivestiture is part of Result's plan to increase its focus on the resource\npotential of the Horn River Basin shale gas play in northeastern British\nColumbia and the Bakken oil play in southeastern Saskatchewan.\n\n\nFollowing completion of this asset sale, the Company will hold oil and\ngas properties with an estimated value of $17 million, $34 million in tax\npools and $1.5 million in cash with no debt.\n\n\nResult gained early entry into the Horn River Basin during 2007 and 2008,\nand has since amassed interest in 83 gross (44 net) sections. Result is\npartnered with a large energy trust in 43 gross (26 net) sections at Gunnell\nCreek, and with a private company in 25 gross (2.5 net) sections at Dilly\nCreek. The Company has a 100% working interest in an additional 10 sections at\nWest Gunnell Creek and 5 sections at Moss Creek. Result's Horn River project\nareas are situated in close proximity to lands held by various major industry\nplayers. In conjunction with its energy trust partner, Result has recently\njoined the Horn River Producers Group, an industry cooperative involving the\nmajor operators in the Horn River play.\n\n\nThe Horn River is widely regarded as analogous to the Barnett shale gas\nplay in Texas. However, the Horn River shales are generally thicker and\nexhibit greater gas maturities. Furthermore, the Government of British\nColumbia has established an attractive lease tenure system and proposes to\nimplement a net profits royalty regime to encourage shale gas development.\n\n\nIn southeast Saskatchewan, Result has farmed-in...

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