TORONTO, May 9 /CNW/ - Exile Resources Inc. ("Exile" or the "Corporation") (TSXV: ERI) has been notified by Aladdin Middle East Ltd. ("AME") that AME's Rubai exploration licences Nos. 2759, 2598, 2599, 2600 and
2601 (the "Rubai Licences") in southeast Turkey have been cancelled by the General Directorate of
Petroleum Affairs of the Republic of Turkey ("GDPA"), for a failure to meet the district timing requirements for drilling.
Exile has confirmed that the cancellation notification appeared in
Turkey's Official Gazette on May 7, 2011. The cancellation order was
signed by the Minister of Energy on April 26, 2011, but Exile had not
been notified or provided with a copy of the order.
This unexpected development concerns Exile since the Rubai Licences
were the farm-in lands associated with the AME farm-in signed in July
2010. Under the farm-in terms, Exile earns up to 35% equity in
proportion to expenditures capped at $5.526 million in the five Rubai
Licences. Exile had expected to earn this equity by mid-2011,
associated with continued drilling on the Bostanci-1 well. As
announced on April 28, 2011, Exile had spudded the Bostanci-1 well on
April 24, 2011 on Licence 2600 in order to fulfill the district
drilling requirement on the Rubai Licences.
The US$2.9 million invested to date by Exile under the AME farm-in has
been invested in a well recompletion, new seismic, and drilling on
Bostanci in the Rubai Licences. The Bostanci-1 exploration well had
been undergoing pre-drilling work during March and April, and Exile had
advanced US$1.525 million, representing its 50% share, to initiate
drilling. Site preparation began in early March, the drilling rig was
mobilized to the site in early April and the well was spudded on April
24, 2011. As a result of the latest developments, drilling has been
suspended and the well is in the process of being temporarily
Exile will be meeting with partners and the Turkish government officials
in the coming days to clarify the situation, and develop next steps.
Exile will keep the market informed as more information becomes
ABOUT THE CORPORATION
Exile is a Canada-based public company currently engaged in the
exploration, development and production of petroleum and natural gas in
Turkey, Nigeria and Zambia.
Forward-Looking Statements - This news release contains certain
forward‐looking statements including, but not limited to: the
Corporation's plans to seek remedies available to Exile with respect to
the cancellation of the Rubai Licences, including its intention to
re-apply for the Rubai Licences, and means to mitigate Exile's costs
associated with the Rubai Licences.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of Exile
Resources Inc. including, but not limited to the impact of general
economic conditions, industry conditions, volatility of commodity
prices, risks associated with the uncertainty of estimates, currency
fluctuations, independent actions of its joint venture partners,
dependence upon regulatory approvals, the availability of future
financing and exploration risk. Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
Additional information relating to Exile is also available on SEDAR at www.sedar.com
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 news
SOURCE Exile Resources Inc.
For further information:
Tony Henshaw, President and CEO
Exile Resources Inc.
+44 207 793 2594
+1 403 218 2839