Greentree Gas & Oil Ltd.
Listing: TSX Venture Exchange: "GGO"
Issued Common Shares: 54,038,463
Echo Energy Canada Inc.
Listing: TSX Venture Exchange: "EEI.V"
Issued Common Shares: 60,208,086
LONDON, ON, Sept. 30 /CNW/ - Duncan Hamilton, President of Greentree Gas & Oil Ltd. (TSXV:GGO) ("Greentree") and Charles Edey, President of Echo Energy Canada Inc. (TSXV:EEI) ("ECHO") announced today that they have entered into formal negotiations about possible joint operations.
Greentree and Echo each recognize that there are opportunities to reduce costs and improve operating efficiency by sharing management and operational staff and resources. The parties have agreed to enter into exclusive negotiations with each other regarding contractual arrangements for sharing of staff and resources.
"Our field staffs criss-cross each other at regular intervals as they service our contiguous wells, so it makes sense to talk about some form of cost sharing arrangement," Hamilton said.
Greentree and Echo also recognize that there may be opportunities for even greater cost reductions and efficiencies if their operations were merged or if one company were to acquire the gas and oil operating assets of the other, as this could reduce the significant management, regulatory and compliance costs currently being incurred by each party.
"With high compliance costs and low gas prices, we want to look at the significant cost savings that could come from some form of amalgamation or merger," Edey said.
About Greentree Gas and Oil Ltd.
Greentree Gas & Oil Ltd. is based in London, Ontario and is an explorer and producer of oil and natural gas in southwestern Ontario.
About Echo Energy Canada Inc.
Echo Energy Canada Inc. is a publicly traded energy company with revenue producing natural gas production operations near Port Burwell Ontario, Canada on the shores of Lake Erie.
Statements in this news release that are not historical facts, including statements about plans and expectations regarding properties, reserves, transactions and opportunities, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing gas and commodity prices and currency exchange rates, demand for gas, lack of success of future exploration and development, competition and other factors discussed from time to time in the company's filings with the Ontario Securities Commission.
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 release.
SOURCE Echo Energy Canada Inc
For further information: For further information: Duncan Hamilton, M.Sc., P. Geol., President, Greentree Gas & Oil Ltd., 207-209 Consortium Court, London, Ontario, N6E 2S8, Telephone: (519) 681-9355, Facsimile: (519) 681-3887, email: Greentree.email@example.com; Charles Edey, President, at 1-877-396-3540, firstname.lastname@example.org, http://www.echoenergycanada.com