MOO: TSX Venture Exchange
TORONTO, Feb. 22, 2012 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor")
announced today that pursuant to the Farmout Agreement entered into by
Mooncor with a private Alberta based oil and gas exploration company
(the "Farmee") over its 102,400 acre land position in the Hamburg area of Alberta
(the "Hamburg Lands"), as previously announced on January 16, 2012, Mooncor is currently
looking for shareholder consent of the Farmout Agreement. The Farmout
Agreement has been conditionally approved by the TSX Venture Exchange
(the "Exchange") but is subject to final approval by the Exchange before it becomes
effective. One of the conditions of receiving final approval of the
Exchange is that Mooncor obtain the consent of its shareholders to the
Accordingly, Mooncor is now actively soliciting shareholders to consent
to the Farmout Agreement by executing a Shareholder Consent form filed
by Mooncor on SEDAR (www.sedar.com) on February 14, 2012. The Shareholder Consent form will also be made
available on Mooncor's website (www.mooncor.com). Mooncor is asking shareholder's to complete, sign and return the form
to Mooncor's legal counsel, Garfinkle Biderman LLP, Attention: Robbie
Grossman, on or before 5:00 p.m. (EST) on March 2, 2012. Return instructions are provided in the Shareholder Consent form.
Under the terms of the Farmout Agreement, the Farmee must drill eleven
(11) test wells on the lands and log and test all formations
prospective of containing petroleum substances under rights held by
Mooncor. The Farmee will commence drilling operations on or before May
30, 2012 at its sole cost, risk and expense. Upon fulfilling its
obligations to drill all eleven (11) test wells, the Farmee will earn
(i) 100% of Mooncor's interest in each of the eleven (11) drill spacing
units (each drilling spacing unit = 1 section = 640 acres) subject to a
6% overriding royalty (subject to specific deductions) payable to
Mooncor upon initiation of production, which is convertible into a 20%
undivided participating interest upon payout, and (ii) 80% of Mooncor's
interest in the remaining Hamburg Lands. The eleven (11) test wells
will validate as qualified land of a licence to extend from the primary
term (4 years) to an intermediate term (additional 5 year extension).
The Farmee has until April 30, 2012 to demonstrate dedicated funds of a
minimum $16.5 million in order to meet its obligations pursuant to the
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration company.
Mooncor's current emphasis is on securing a joint venture partner for
its proven Muskwa/Duvernay liquids rich shale gas project at Hamburg,
Alberta. Mooncor also holds interests in lands in southwest Ontario
where the focus has been on conventional oil and gas opportunities.
Mooncor is pursuing opportunities to realize near-term value from its
southwest Ontario assets.
The information in this news release includes certain information and
statements about management's view of future events, expectations,
plans and prospects that constitute forward looking statements. These
statements are based upon assumptions that are subject to significant
risks and uncertainties. Because of these risks and uncertainties and
as a result of a variety of factors, the actual results, expectations,
achievements or performance may differ materially from those
anticipated and indicated by these forward looking statements. Although
Mooncor believes that the expectations reflected in forward looking
statements are reasonable, it can give no assurances that the
expectations of any forward looking statements will prove to be
correct. Except as required by law, Mooncor disclaims any intention and
assumes no obligation to update or revise any forward looking
statements to reflect actual results, whether as a result of new
information, future events, changes in assumptions, changes in factors
affecting such forward looking statements or otherwise.
Neither 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 Mooncor Oil and Gas Corp.
For further information:
Chief Executive Officer
Mooncor Oil & Gas Corp.
Contact Financial Corp.
Tel: (778) 327-5019