CALGARY, Dec. 17 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV: URX) announces it has entered into two separate agreements with an industry participant (the "Buyer") pursuant to which Unitech will generate two LeadScan Regional Studies (the "Studies") for the Buyer.
Unitech is to use its proprietary LeadScan technology to scan approximately 25,000 intervals (defined as up to 50 metres of wellbore depth) in southern Saskatchewan and deliver the new Studies to the Buyer before year-end 2008. Unitech will receive consideration of $108,000 in cash plus additional non-cash consideration. The non-cash consideration provides an entry to Unitech into a new exploratory Roseary oil prospect in southwest Saskatchewan which would otherwise not be available. Unitech will be carried for 10% through to production on the first well with no cash-outlay, after which it will have earned a 5% gross overriding royalty ("GOR") and a 5% working interest in any follow-up wells. The industry partner expects to drill the prospect in 2009.
On completion of the Study, Unitech anticipates recording the $108,000 cash component of the study as revenue, and any further benefits, if any, realized under the GOR or any working interest acquired under the agreements, in income only as income is realized from those rights.
These two agreements are in addition to the agreement announced on December 4, 2008 and bring the total cash component of 2008 LeadScan study sales to approximately $208,000.
About Unitech Energy Resources Inc.
Unitech uses its proprietary image analysis and pattern recognition system, called LeadScan, for a 'first look advantage' that drives Unitech's exploration strategy. Please visit Unitech's website at www.leadscan.ca. Shares of Unitech are listed for trading on the TSX Venture Exchange under the symbol URX.
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