CALGARY, Sept. 19 /CNW/ - Resilient Resources Ltd. ("Resilient")
(TSX:RRL) has completed its previously announced brokered private placement of
units, issuing 3,076,923 units for gross proceeds of $2,000,000. Wolverton
Securities Ltd. acted as agent in connection with the private placement. The
net proceeds from the private placement will be used by Resilient to finance
its exploration and development program on the Blackfeet Indian Reserve in
northern Montana.
Resilient is currently drilling Spring Creek Moulton No. 3 - the first of
two wells planned in 2005. Moulton No. 3 is drilling at 3760 feet, the planned
total depth is 4200 feet. The well will evaluate the Bow Island, Glauconite,
Cutbank and Mississippian formations. All have oil and/or gas potential.
Following drilling completion of the Spring Creek Moulton No. 3 well, the
drilling rig will move to Spring Creek Moulton No. 4, some 15 miles north.
This exploratory well will also evaluate the same potential zones as Moulton
No. 3. Resilient has also entered into an arrangement with a third party
pursuant to which the third party will pay one-third of the costs related to
the drilling of such wells for a one-quarter economic interest in the wells.
The arrangement also provides the third party with an option to pay one-third
of the costs related to three additional exploratory wells which may be
drilled by Resilient for a one-quarter economic interest in all of Resilient's
properties.
Resilient is working with Aquilon Capital Corp. ("Aquilon") on final
documentation to exchange Aquilon's secured debenture in the principal amount
of $2 million into 1,333,333 common shares of Resilient and a production
payment arrangement pursuant to which Aquilon would receive netbacks from
Resilient's currently producing oil wells (approximately 35 bbl/d)
indefinitely, as previously disclosed. Once final documentation is entered
into between the parties, Resilient will have no debt outstanding.
Located in Calgary, Alberta, Resilient Resources Ltd. is a junior oil and
gas exploration company. Resilient's 100,000 acre block contains several oil
and gas prospects, including Bow Island natural gas, Glauconite channel sands,
Cutbank, Mississippian and Devonian extending south of the Alberta border.
Within a 35 mile radius of Resilient's land position there exists several
major oil and gas pools including the Cutbank Field - (175,000,000 barrels of
cumulative oil production), Reagan Field - (10,000,000 barrels of cumulative
oil production), Moulton Field - (15,000,000 barrels of cumulative oil
production), Big Rock Field - (30 Billion cubic feet of cumulative natural gas
production), and Pondera Field (30,000,000 barrels of cumulative oil
production).
Forward-Looking Statements Advisory
This news release contains forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements include estimates,
plans, expectations, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although Resilient believes that
the expectations reflected in such forward-looking statements are reasonable,
undue reliance should not be placed on them because we can give no assurance
that such expectations will prove to have been correct. Factors that could
cause actual results to differ materially from those set forward in the
forward-looking statements include general economic, business and market
conditions. Resilient's forward-looking statements are expressly qualified in
their entirety by this cautionary statement. We undertake no obligation to
update our forward-looking statements except as required by law.
%SEDAR: 00002500E
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