PAN - TSXV
CALGARY, Oct. 1 /CNW/ - PanTerra Resource Corp. (The "Company") wishes to
report that it has closed (subject to final TSX-V approval) its previously
announced intention to acquire Stealth Venture Ltd's (Stealth) 50% share of
the jointly held assets (1.1 million acres (gross)) in the province of
Saskatchewan. The Company now controls 1.1 million acres (net) in the province
with a 100% working interest. In consideration for this transaction, the
Company will issue to Stealth 13,000,000 common shares of the Company at a
deemed value of $0.25 per share, such shares shall be subject to a one year
hold period. This transaction is considered an 'Arms Length Transaction' and
no finder's fees were paid as a result.
The Company also reports that it has completed and fracture stimulated a
number of zones in four wells on two of its properties, Moose Jaw and Foam
Lake, which represents approximately 10% of the completion and stimulation
program currently underway. All wells were flowed back after nitrogen based
fracture stimulations and yielded natural gas in increasing amounts.
Fred Rumak, President stated, "Completion and fracture stimulation costs
incurred to date have been below original budgeted costs due to general
industry conditions and operational efficiencies employed by the stimulation
contractors. Lower completion costs, combined with favorable provincial
royalty rates in Saskatchewan (5% to 7% for unconventional natural gas)
enhance shale gas project economics."
PanTerra Resource Corp. is an Alberta-based resource company focused on
the exploration and development of unconventional shallow and shale gas. The
Company holds three exploration permits and four licenses for a total of
1.1 million acres (net) on four properties in the province of Saskatchewan.
PanTerra trades on the TSX Venture Exchange under the symbol "PAN". Further
information can be found at www.panterraresource.com.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
For further information:
For further information: Fred P. Rumak, P.Geol., President and C.E.O. at
(403) 261-5900, Email: firstname.lastname@example.org or Herve B. Collet, V.P.
Operations/C.O.O. at (403) 261-5900, Email: email@example.com