TSX Venture Exchange
Trading Symbol: KIR
Issued Common Shares: 57,732,307
CALGARY, May 25 /CNW/ - Kierland Resources Ltd. ("Kierland" or the "Company") announces that it has closed the purchase of 100% of the shares of QMAC Ventures Inc. ("QMAC") on April 1, 2010.
All share adjustments have been finalized for the acquisition of 96% of the issued shares of QMAC in exchange for Kierland shares. The original share consideration of approximately 14,000,000 Kierland shares was reduced to 9,809,981 shares pursuant to an Adjustment Agreement dated April 30, 2010. The deemed issue price of $0.10 per Kierland share and the four month hold remain unchanged from the amended and restated agreement dated December 22, 2009. Kierland also assumed QMAC's bank debt of approximately $800,000 and paid cash of $1,175,259 to settle all known QMAC creditor amounts.
The remaining 4% of the issued shares were acquired for the approximate cash sum of $96,000.
QMAC owns and operates oil and gas properties in the Province of Saskatchewan, Canada. Highlights of the acquisition of QMAC are:
- 600 mcf/d of natural gas - 100 boe/d equivalent
- 5.8 year reserve life index
- 32,000 gross/31,080 net acres undeveloped land
Richard J. Boswell, President and CEO stated: "We are pleased about the acquisition of QMAC. There are currently 34 producing wells plus an additional 14 standing wells waiting on completion and tie-in. Kierland expects to spend $500,000 to increase production from the QMAC properties in Saskatchewan following completion of an optimization study currently in progress. The QMAC acquisition also accrues tax pools in the approximate amount of $4.5 million."
The Company announces its financial and operating results for the three months and year ended December 21, 2009. The audited financial statements and Management's Discussion and Analysis were filed April 30, 2010 on SEDAR at www.sedar.com. The Company also announces its reserves for the fiscal year ended December 31, 2009 and advises that it has filed it National Instrument 51-101 F1, F2 and F3 oil and gas service information on SEDAR.
About Kierland Resources Ltd.
Kierland Resources Ltd. is a publicly traded junior oil and gas company focused on exploration and development of oil and natural gas including Saskatchewan and Alberta. The Company remains focused on strategic acquisitions and aggressively expanding production, reserves and opportunistic transactions in this sector.
Forward-Looking Statements and Information: The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kierland, including: (i) with respect to the anticipated closing dates of the transactions and financing, expectations and assumptions concerning timing of receipt of required shareholder, court and regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the transactions and financing and (ii) with respect to the anticipated exploration and development opportunities, anticipated recovery factors, anticipated 2010 capital expenditures and the anticipated 2010 average and exit rates of production, expectations and assumptions concerning the success of future exploration and development activities, the performance of existing wells, the performance of new wells and prevailing commodity prices.
Although Kierland believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Kierland can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the transactions and financing, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Kierland's Management Discussion and Analysis which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this document are made as of the date hereof and Kierland undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
MEANING OF BOE
When used in this press release, boe means a barrel of oil equivalent on the basis of 1 boe to 6 thousand cubic feet of natural gas. Boepd means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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.
SOURCE KIERLAND RESOURCES LTD.
For further information: For further information: Richard J. Boswell, President and Chief Executive Office, Kierland Resources Ltd., 8th Floor, 744 4th Avenue SW, Calgary, Alberta, T2P 3T4, Telephone: (403) 510-2957