CALGARY, Dec. 19 /CNW/ - Resilient Resources Ltd. ("Resilient") (TSX:RRL)
is pleased to announce that it has completed its previously announced
restructuring of its senior, secured 10% debenture (the "Debenture") held by
Aquilon Capital Corp. managed accounts ("Aquilon") with an effective date of
March 1, 2005. Under the restructuring, the Debenture was replaced by a
production payment agreement (the "Agreement") entitling Aquilon to netbacks
from Resilient's producing oil wells (the "Wells") (which had average
production of approximately 30 barrels per day from March 1 to October 31,
2005) for the life of such production and a debenture in the principal amount
of $1,048,614.15 which was redeemed by Resilient effective October 31, 2005
for 1,398,152 common shares of Resilient. Under the Agreement, Aquilon is
entitled to acquire all of Resilient's interest in the Wells for no
consideration upon an uncured event of default and Resilient is entitled to
terminate the Agreement, giving it back the production from the Wells, for a
price equal to four times the 120 day trailing annualized netbacks from the
Wells. With the completion of the restructuring, Resilient has no debt.
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). All cumulative oil production figures are derived from publicly
available information.
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