CALGARY, Sept. 21, 2011 /CNW/ - Petrus Resources Ltd. ("Petrus" or the
"Company") is pleased to announce that it has entered into a purchase
and sale agreement to acquire oil and natural gas assets in the central
Alberta foothills area. The acquisition is being made jointly with
Manitok Energy Inc. ("Manitok") for total cash consideration of
$85,000,000 before closing adjustments and related costs. Each company
will participate with an equal 50% interest in the acquisition, which
includes gross production of approximately 2,600 barrels of oil
equivalent per day ("boe/d"), weighted 94% to natural gas (1,300 boe/d
net to Petrus). The acquisition has an effective date of July 1, 2011
and is expected to close on October 31, 2011, subject to customary
conditions. Petrus is able to finance its 50% interest using available
cash and credit facilities.
The acquisition sets the stage for future growth, both organically and
through additional acquisition opportunities. The acquisition includes
the following (all figures provided below are net to Petrus):
Production of approximately 1,300 boe/d (94% natural gas)
Proved reserves of 4,998 Mboe and proved plus probable reserves of 6,810
Mboe, based on a GLJ Petroleum Consultants ("GLJ") report effective
March 31, 2011; the reserve life index is 10.0 years on a proved basis
and 13.5 years on a proved plus probable basis
Operating costs of approximately $9.00 per boe; average 2010 netback of
Net land of approximately 31,500 acres, half of which is undeveloped
533 kilometres of proprietary 2D seismic data
An initial drilling inventory of more than 30 Cardium oil and gas
locations, with additional opportunities targeting various Cretaceous
Facilities include a 20% working interest in a sweet gas plant, a 50%
working interest in three compressor and dehydration stations and
varying ownership in field compressor sites and assorted gathering
A portion of the production in the asset package is subject to right of
first refusal options ("ROFR") held by various third parties. If any
ROFR is exercised, the corresponding amount of production and reserves
acquired will be reduced, and the purchase price will be reduced by the
value assigned to those assets.
In conjunction with the acquisition, Petrus and Manitok will enter into
a joint operating agreement and establish an area of mutual interest.
Petrus and Manitok are also in discussions regarding a farm out
agreement of Manitok's upcoming drill program on a portion of its land
in the foothills region.
Petrus is a private energy company formed in 2011 to capitalize on the
current opportunity to aggregate natural gas assets at attractive
prices. The Company raised seed capital in March and assembled a
technical team comprised of individuals who formerly played key roles
at Peyto Exploration & Development Corp. ("Peyto"), one of the most
successful energy companies in Canada over the past decade.
Peyto co-founder Don Gray is Executive Chairman of Petrus. Dave Drover
and Neil Korchinski, both of whom previously worked at Peyto, have been
appointed VP Exploration and VP Engineering, respectively. Former Peyto
controller Cheree Stephenson will hold the same position at Petrus. The
individuals who previously had an association with Peyto had left to
work at other companies before being recruited for the Petrus team.
Kevin Adair, previously co-founder of Spry Energy Ltd. and former
President of Petrobank Energy and Resources Ltd., has joined Petrus in
the role of President.
Don Gray said: "I'm very pleased with the team we have assembled for
Petrus. The enthusiasm, skills and experience of these individuals is
exactly what we need to reach the level of excellence that I expect
Petrus to operate at."
The Petrus Board of Directors is comprised of Don Gray, Kevin Adair and
Peter Verburg, along with Rick Braund, Richard Lonquist and Patrick
Arnell as independent directors. All of the directors of Petrus have
been selected for their independence, their business savvy, their
willingness to invest meaningful sums in the venture, and for the high
ethical standards with which they have conducted themselves throughout
Certain statements in this document are "forward-looking statements."
These statements are based on management's current expectations and
beliefs and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those described in
the forward-looking statements. Forward-looking statements are not
guarantees of future performance and Petrus cannot provide any
assurance that these expectations will prove to be correct. Any
forward-looking statements are made as of the date hereof and Petrus
does not undertake any obligation, except as required under applicable
law, to publicly update or revise such statements to reflect new
information, subsequent or otherwise.
This news release shall not constitute an offer to sell, or the
solicitation of an offer to buy, securities in any province or
territory of Canada or securities in the United States, nor shall there
be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
Petrus securities will not be, and have not been, registered under the
United States Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirements of that Act.
SOURCE Petrus Resources Ltd.
For further information:
Kevin Adair, P.Eng.