Georox Announces Sale of Gift Lake Assets
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
KELOWNA, BC, Nov. 30, 2012 /CNW/ - Georox Resources Inc. ("Georox" or the "Company") entered into an asset purchase agreement for the sale of certain oil and gas interests located in the Gift Lake area of north central Alberta to Yorkton Ventures Inc. ("YVI") for $750,000 comprised of cash consideration of $700,000 and 500,000 common shares of YVI at a deemed price of $0.10 per common share, subject to certain adjustments. YVI is a capital pool corporation listed on the TSX Venture Exchange. The Gift Lake sale is intended by YVI to constitute its qualifying transaction, and, as such, is subject to exchange approval. The transaction is an arm's length transaction and is not expected to require YVI shareholder approval.
The Gift Lake assets include interests in producing Slave Point light oil (1 well at 25 percent working interest) and producing Gilwood light oil (1 well at 45 percent working interest, 1 well at 15.198 percent working interest and 1 well at 1.875 percent royalty interest) in the area. The wells are currently producing approximately 33 barrels per day of light oil net to the Company. As aggregate 12 month revenue from these assets constitutes in excess of 25% of Georox revenue for the preceding 12 months, the disposition is reviewable and subject to the consent of the TSX Venture Exchange.
"The sale of the Gift Lake assets will provide capital to fund exploration and development programs on the Company's other properties and for other potential acquisitions." commented Burkhard Franz, CEO.
Completion of the transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange approval. There can be no assurance that the transaction will be completed as proposed or at all.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward Looking Statement
This release contains forward looking statements. The words "believe," "expect," "feel," "plan," "anticipate," "project," "could," "should" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic volumes of oil and gas, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.
SOURCE: Georox Resources Inc.For further information:
Burkhard Franz, President and Chief Executive Officer
Tel: (250) 712-2213
Fax: (250) 712-2215