/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
CALGARY, April 30 /CNW/ - TriOil Resources Ltd. (formerly One Exploration Inc.) ("TriOil" - TSXV:TOL) is pleased to announce that it has closed the previously announced asset purchase agreement (the "Agreement") with an intermediate oil and gas producer to acquire a significant undeveloped land position and certain minor producing assets within its core Lochend Cardium light oil play in Southern Alberta (the "Acquisition").
Pursuant to the terms of the Agreement TriOil has acquired 17 net (23 gross) sections of undeveloped land and approximately 50 boe/d of production for a cash purchase price of $7,500,000 and the issuance of Class A shares worth $7,500,000 (1,312,566 Class A shares at a deemed price of $5.7139 per Class A Share).
The Acquisition adds 17 net sections of operated, undeveloped acreage with working interests ranging from 60% to 100%. The Acquisition significantly increases to TriOil's existing undeveloped land position on an early stage Cardium light oil resource play at Lochend, Alberta. The prospective Cardium "A" sand at Lochend is interpreted by TriOil as being geologically analogous to the offsetting Cardium "A" sand trend at Garrington, with Lochend being at a much earlier stage of development.
On closing the Acquisition, TriOil now owns 42 net sections (57 gross sections) on the Lochend Cardium trend. TriOil plans to commence a multi-well drilling program at Lochend in the second half of 2010.
TriOil is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. The Acquisition represents a significant progression of management's business plan to build a high quality oil asset base with a focus on horizontal drilling and multi-frac completion applications. TriOil's growth strategy follows a balanced combination of exploitation, exploration and strategic acquisitions that increase the company's growth platform and oil weighting.
The TSX Venture Exchange has conditionally approved the listing of the Class A issuable pursuant to the Acquisition. Such listing is subject to the Corporation fulfilling all of the customary listing requirements of the TSX Venture Exchange following closing of the Acquisition.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information concerning the anticipated timing of drilling operations and certain anticipated results of the Acquisition.
The forward-looking information are based on certain key expectations and assumptions made by TriOil, including expectations and assumptions that: TriOil will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund TriOil's capital and operating requirements as needed; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; the accuracy of the estimates of reserve volumes; and certain commodity price and other cost assumptions. Although TriOil believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because TriOil can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature it involves 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, changes in commodity prices; unanticipated operating results or production declines; changes in tax or environmental laws or royalty rates; increased debt levels or debt service requirements; inaccurate estimation of oil and gas reserves volumes; increased costs and expenses; the impact of competitors; reliance on industry partners; and certain other risks detailed from time to time in TriOil's public disclosure documents, copies of which are available on TriOil's SEDAR profile at www.sedar.com.
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and TriOil 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.
Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Figures quoted may not add exactly due to rounding.
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 TriOil Resources Ltd.
For further information: For further information: Russell J. Tripp, President & CEO, TriOil Resources Ltd., Phone: (403) 265-4115