Company also Signs LOI to Dramatically Boost its Oil Sands Holdings
CALGARY, Alberta, Nov. 16 /CNW/ -- Tamm Oil and Gas Corp. (OTC Bulletin
Board: TAMO) is pleased to announce the Company has entered into a definitive
agreement (the "Agreement") to purchase the Gross Overriding Royalty Rights
("GORR") in Oil Sands Leases pursuant to which the Selling Companies have
agreed to transfer all of the interest in the GORR in exchange for 4,000,000
shares of Tamm's common stock.
The GORR is an overriding royalty that will provide Tamm with a revenue
source of 2% from every barrel of oil sold from the leases without burden of
operating expenses in the world renowned Sawn Lake Region of Northern Alberta.
The GORR ultimately has a higher value than the equivalent percentage working
interest in a property.
Tamm also recently executed a Letter of Intent (LOI) between the Company
and 1132559 Alberta Ltd. (1132559), which is expected to further enhance
Tamm's planned presence in the Sawn Lake Region. According to the terms of
the LOI, Tamm is to acquire all of the issued and outstanding shares of
1132559 in consideration for which Tamm has agreed to; (i) issue 15,000,000
shares of the Company's common stock to 1132559 Stockholders; (ii) complete a
financing of up to $3,250,000, (iii) cancel 34,000,000 shares held by the
principal stockholder of the Company and (v) appoint two nominees to the board
of the Company.
1132559 Alberta Ltd. is a private company incorporated under the laws of
Alberta, Canada. It holds a direct working interest of 10% in 63 sections of
Oil Sands leases in the Sawn Lake Region in Northern Alberta.
"The GORR and 1132559 Alberta Ltd. acquisition allows Tamm to immediately
jump into the fast moving Oil Sands play in Alberta along with many of the top
oil & gas companies from around the world. With the 1132559 Alberta Ltd.
transaction completed, the newly-formed Tamm Oil and Gas Corp. will become a
sizable stake holder in the prolific Oil Sands Region of Alberta almost
overnight. The Tamm interest is located in what many experts are calling one
of the largest and most promising petroleum producing fields ever discovered
in the world. In fact, an analyst report by a qualified independent
engineering analyst predicts that the Sawn Lake Oil Sands Project holds
estimated resources of 819.5 million initial barrels of oil in place," says
Sean Dickenson, President & CEO of Tamm Oil and Gas Corp.
Forward-Looking Statements in this news release that are not historical
facts are forward-looking statements that are subject to risks and
uncertainties. Forward-looking statements are based on current facts and
analyses and other information that are based on forecasts of future results,
estimates of amounts not yet determined and assumptions of management. Forward
looking statements are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "aims", "potential", "goal", "objective", "prospective", and
similar expressions or that events or conditions "will", "would", "may",
"can", "could" or "should" occur. Information concerning oil or natural gas
reserve estimates may also be deemed to be forward looking statements, as it
constitutes a prediction of what might be found to be present when and if a
project is actually developed. It is important to note that actual outcomes
and the Company's actual results could differ materially from those in such
forward-looking statements. Factors that could cause actual results to differ
materially include misinterpretation of data, inaccurate estimates of oil and
natural gas reserves, the uncertainty of the requirements demanded by
environmental agencies, the Company's ability to raise financing for
operations, breach by parties with whom we have contracted, inability to
maintain qualified employees or consultants because of compensation or other
issues, competition for equipment, inability to obtain drilling permits,
potential delays or obstacles in drilling operations and interpreting data,
the likelihood that no commercial quantities of oil or gas are found or
recoverable, our successful closing of the acquisition of Alberta Co, and our
ability to participate in the exploration of, and successful completion of
development programs on the wells in which Alberta Co has an interest.
Additional information on risks for the Company can be found in filings on
Edgar of other junior oil and gas exploration companies with the US Securities
and Exchange Commission.
For further information:
For further information: Tamm Oil and Gas Corp., +1-403-975-9399,