Business
Result Energy Inc. Secures Additional Lands and a Major Partner in the Horn River Basin, B.C.
CALGARY, July 14 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is pleased to provide the foll...
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, July 14 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is\npleased to provide the following operational update with respect to the\nCompany's project activity in the Horn River Basin, northeastern British\nColumbia:\n\n\nAt a recent Crown land sale, Result and a joint venture partner were\nsuccessful in acquiring an additional 18 gross sections of mineral rights in\nthe Gunnell Creek area of the Horn River Basin. Upon completion of\nsatisfactory earning provisions by Result's partner, Result's landholdings in\nthe Horn River Basin will increase to 58 gross sections (41 net), all of which\nare highly prospective for the Muskwa-Evie shale gas and Keg River platform\ngas plays. Result intends to satisfy its financial obligations with respect to\nthe new land acquisition through a private placement issuance of common shares\nfrom treasury, subject to regulatory approval.\n\n\nGunnell Creek Project Area:\n\n- In the Gunnell Creek area, Result has acquired an interest in 18\n additional sections of mineral rights immediately adjacent to the\n Company's existing 25 sections of land. This acquisition was made\n under a joint venture with a major public energy trust, with Result's\n interest in both parcels at 60%. Result has been designated operator\n of record for this project area.\n- Result will satisfy its 60% share of the land acquisition costs\n through a private placement (subject to regulatory approval) of\n approximately 4,158,522 common shares to the joint venture partner at\n a deemed price of $0.533 per share, which represents the trailing\n weighted average market price of Result's common shares for the 20\n business days prior to the land purchases.\n- Result and its joint venture partner are finalizing a proposed\n capital program for Q1-09, which shall include the drilling of 2\n vertical test wells, plus the acquisition of additional seismic and\n land. Subject to certain conditions, the partner has agreed, as part\n of its earning and equalization fee in the joint venture, to either\n pay up to 70% of the capital costs of these two wells or acquire\n previously identified strategic assets, in return for a 40% working\n interest in Result's existing 25 contiguous sections of land.\n- Result has recently purchased and re-interpreted a 3-dimensional\n trade seismic program over a portion of its lands a...