Result Energy Inc. Expands Land Position and Secures a Second Major Industry Partner in the Horn River Basin Shale Gas Project

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[{"type":"text","content":"\n\n\n\nCALGARY, Aug. 14 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is\npleased to announce that it has entered into a second agreement with a major\noil and gas entity, and has acquired a 10% working interest in 25 additional\nsections in the Horn River Basin, northeastern British Columbia. This\nincreases Result's exposure to 83 gross (43.3 net) sections in this highly\nprospective new shale gas play.\n\n\n- Result has entered into an agreement dated August 14, 2008 with Seven\n Generations Energy Ltd. ("7G") (the "Agreement"). 7G is a major\n private petroleum company, which was successful in acquiring 25 gross\n contiguous sections of mineral rights at a recent BC land sale. Under\n the terms of its agreement, Result has committed to pay $5 million to\n acquire a 10% working interest in this land block.\n\n- Preliminary plans for this project area include the drilling of at\n least 2 (0.2 net to Result) vertical shale gas wells in the Q1-09\n period. Horizontal well legs may also be drilled in the Devonian\n shale this winter, depending on favorable drilling results, weather,\n and equipment availability.\n\n- Result will fund the land acquisition through a private placement of\n common shares to 7G at a deemed price of $0.533 per share, which\n represents the trailing weighted average market price of Result's\n common shares for the 20 business days up to and including the date\n of the land sale. Subject to regulatory approval, Result expects to\n issue 9,380,863 common shares from treasury, which will increase\n Result's issued and outstanding shares to 72,868,523.\n\n- As a result of this land acquisition, 7G will own approximately 12.9%\n of Result's outstanding common shares, and will thus be considered an\n insider of Result under applicable securities laws. 7G is acquiring\n these shares for investment purposes only, and at this time does not\n have an intention to acquire additional common shares.\n\n- The land acquired is in the Dilly Creek area, which is regarded as\n one of the more prospective regions within the Horn River Basin for\n shale gas potential. The joint venture lands are believed to contain\n more than 125 meters of prospective Muskwa-Evie shales and are\n located less than 20 kilometers from the prolific Trail a-26-G well,\n which earlier this year reportedly had gas flow ...

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