KELOWNA, BC, Sept. 28 /CNW/ - Georox Resources Inc. ("Georox" or the "Corporation") (GXR:TSX-V; OF6A:FRA) is pleased to announce that on September 25, 2009 it signed a Farmout Agreement with a Company in Alberta for the aggregate gross proceeds of $650,000. The Farmout agreement will enable the Company to earn a 15% working interest on the Farmout Lands consisting of 1,040 acres located in the Province of Saskatchewan.
Georox has agreed to pay the Farmor a fee of $50,000 for the opportunity to participate. $25,000 is paid on signing of the agreement and $25,000 will be paid immediately upon spudding of the first well. The initial spud date is November 1, 2009 subject to changes that may occur. $600,000 will be held in trust by Georox legal counsel and shall be released immediately upon receipt of authorization for expenditure relating to the Work Program from the Farmor. Once Georox has completed its obligations under the agreement, the Farmor shall assign to Georox its Earned Interest in the title documents as they pertain to the Farmout Lands subject to any Crown royalties and any other encumbrances. The Farmor shall use its best efforts to novate Georox into the Joint Venture Agreement as to its proportionate working interest.
The Farmout Lands have both 2-D and 3-D seismic support as well as a geological cross section analysis which verifies the Mannville Channel play. 3D Seismic confirms the presence of an undeveloped, deep-cut, oil bearing, Mannville Channel. Based on analogous wells drilled into similar Mannville Channels reserves in excess of 100,000 bbls per well are potential. The plan is to develop this Channel through vertical and primarily horizontal drilling. Drilling activity in the first phase of the program is expected to commence sometime in the beginning of the fourth quarter of 2009 as stated above.
Georox's contribution will be used as part of a $3,000,000 initial work program committed by the joint venture partners, which includes the drilling of three vertical and one horizontal wells in Phase 1. The joint venture partners have identified a total of approximately ten to twelve horizontal oil wells in this play.
This acquisition is a major strategic move in the growth of the company to participate in a low-risk/high-growth potential development opportunity.
The Company trades its common shares on the TSX Venture Exchange under the symbol GXR and its common shares on the Frankfurt Stock Exchange under the symbol OF6A.
For further information you can visit the Corporation's website at: www.georoxresources.com or view the Corporation's records on SEDAR at: www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. This news release includes certain "forward looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation with securities regulations.
SOURCE Georox Resources Inc.
For further information: For further information: Burkhard Franz, President/CEO, Georox Resources Inc., 205B - 478 Bernard Avenue, Kelowna, British Columbia, Canada, V1Y 6N7, Tel: (250) 712-2213, Fax: (250) 712-2215