Petrosands Announces Appointments To Managament Team, Options Grant And Provides Operational Update


TSX Venture Exchange
Trading Symbol: PCA

CALGARY, Sept. 26, 2011 /CNW/ - PetroSands Resources (Canada) Inc. ("PetroSands" or the "Company") is pleased to announce management appointments, additions to the Board of Directors, and is providing an update to its current operations.

Management Appointments and Additions to the Board of Directors

Management Team 

Mr. Dwight Fieseler, Chief Financial Officer. Mr. Fieseler brings over 21 years of experience in the oil and gas industry. Most recently, he was Vice President, Finance & Chief Financial Officer at Petro Uno Resources Ltd., a public oil & gas exploration company. He also held a number of other senior finance positions with major international and intermediate E&P companies including Bonus Energy, Defiant Energy, Centurion Energy, Compton Petroleum, and Wainoco Oil. Mr. Fieseler is a Certified General Accountant (CGA) and holds a Bachelor of Administration from the University of Regina.

Mr. Bruce Eckert, Vice President, Operations. Mr. Eckert is a professional engineer with over 30 years experience in a variety of small, midsize and senior E&P companies. Most recently, Mr. Eckert spent 14 years with Enerplus Resources where he managed over 200 field staff throughout their Western Canadian operations. He holds a Bachelor of Science in Petroleum Engineering from Montana Tech., and is a member of APEGGA.

Mr. Rick Ippolito, Vice President, Exploration. Mr. Ippolito is a professional geological engineer with over 35 years of diversified geological and engineering experience with multinational oil and gas companies. Most recently he was Exploration Manager at Bronco Energy. Prior thereto, he was the Exploration Manager at Greyhawke Resources and Quintana Exploration. He holds a Bachelor of Science in Geological Engineering and is a member of CSPG, AAPG and APEGGA.

Mr. William Bailey, Vice President, Engineering. Mr. Bailey is a professional reservoir engineer with over 35 years of industry experience. He has worked with a number of junior oil and gas companies in addition to major international E&P organizations including Gulf Canada Resources. He holds a Bachelor or Science in Mechanical Engineering and is a member of APEGGA.

Mr. Kevin D. Murphy, Vice President, Land. Mr. Murphy is a landman with over 21years of experience. He previously served as Land Manager at Caravan Oil & Gas Ltd. Prior thereto, he was Vice President, Land at Blackpool Exploration. Mr. Murphy has also held senior level Contracts and Negotiation positions with other junior and intermediate E&P companies. He holds a Bachelor of Commerce in Petroleum Land Management and is a member of the Canadian Association of Petroleum Landmen (CAPL).

Board of Directors 

The Company is pleased to announce the addition of two new board members:   

Ryan Dunfield.  Mr. Dunfield is Vice President with the Vancouver B.C. private equity group, Gibralt Capital Corp. and its affiliate, Second City Capital Partners. Mr. Dunfield is heavily involved with the acquisition and divestiture of portfolio companies within the resource sector. Previous to Gibralt Capital, Mr. Dunfield worked in the debt capital markets with exposure to corporate banking, leveraged finance and loan syndications. Most recently, Mr. Dunfield was the Director of Loan Syndications & Trading with a Canadian financial institution focused on structuring and distributing first and second lien syndicated bank loans within the oil & gas sector. Mr. Dunfield received a Bachelor of Economics and Finance from the University of Calgary.

Dennis Nerland.  Mr. Nerland has been a partner of Shea Nerland Calnan LLP since 1990, practicing primarily in the areas of tax and trust law. Mr. Nerland is a current and past Director of a number of private and public companies listed on the TSX Venture Exchange as well as the Toronto Stock Exchange and is currently a trustee of a number of private investment trusts. Mr. Nerland holds a Bachelor of Laws from the University of Calgary, a Master of Arts degree in Economics from Carleton University, a double honours Bachelor of Science degree in Mathematics and Economics from the University of Calgary, and is a member of the Law Society of Alberta.

The board of directors of the Company is now composed of the following individuals: Greg T. Busby, President & CEO, George Paulus, Mal Spooner, Ryan Dunfield and Dennis Nerland.

Options Grant

Additionally, the Company has granted options to certain directors and an officer to acquire an aggregate of 400,000 common shares of the Company at an exercise price of $0.18 per common share. The options vest and become exercisable as to one-half on the date of grant and one half on the first anniversary of the date of grant and will expire on Sept. 23, 2016. Stock option grants are subject to all regulatory approvals, including the approval of the TSX Venture Exchange.

Operational Update

The Company's current daily production is approximately 400 boe/d of which 75% is derived from oil and natural gas liquids with the remaining 25% from associated solution gas. Essentially all production comes from the Company's 100% owned and operated core area at Provost in east-central Alberta.


The Company recently re-completed two (2.0 net) wells at Provost in an uphole Sparky formation. The program was initiated based on related type activities carried out by other surrounding industry competitors in the area. The initial well at 10-21 was successfully fracture stimulated and is producing approximately 12 boe/d from the Sparky formation. This well is currently being reviewed to determine if additional follow-up work will be undertaken as initial production rates indicated higher rates than what is currently being delivered. The second location at 13-22 was also recently fracture stimulated using native Sparky oil to eliminate any potential concern of damaging the formation. Both wells are being evaluated for commingling with lower producing zones as deeper formations are perforated and opened, however, the respective zones are currently mechanically isolated. It is anticipated that the commingling operations could potentially more than double current production from both wells and facilities are now in place to handle any expected increase in fluid production. The Company's owned central production facility at 4-29-38-3W4 has sufficient capacity to handle any such increase in oil, water and solution gas produced in the area.

The Company continues its ongoing efforts to optimize and increase field efficiencies, monitor operating costs and maintain compliance with all government authorities in adherence to best oilfield practices. PetroSands is also currently in discussions with other area producers to offer custom processing at the Company's owned facility that could possibly lead to an increase in revenues and decrease in operating costs on a per boe basis. The Company currently enjoys its relationship with local landowners and strives to maintain its positive corporate standing with the surrounding community.

Approximately one half of the Company's production is protected from fluctuating commodity prices via an executed hedging contract in effect until December 31, 2012. Production under the Costless Collar is hedged with a set floor price of $95.00/bbl and ceiling price of $114.50/bbl, providing the Company with increased revenue stability over the long term. The Company actively monitors the energy markets and will continue to make adjustments to its hedging strategy when warranted. Additionally, the Company has further reduced its utilization of the revolving credit facility to approximately $2 million from both the close of the recent financing and continued monthly production revenues. Funds received from the recent financing will support the Company's Q4 capital expenditure program consisting of a multi-well drilling program in conjunction with the shooting of a 3-D seismic program in the vicinity of Provost. A development drilling location (0.35 net) on its joint lands with an industry partner at Long Coulee in southern Alberta is also scheduled prior to year-end.

The Provost drilling program will focus on multi-zone targets ranging from the Sparky formation down through the GP, Rex, Lloydminster, Cummings and Dina formations within the Mannville Group. The ERCB has allowed for commingled production resulting in a much higher chance of drilling success and thus reducing the risk of a dry hole. Offsetting initial production rates in the area range from as high as 150 boe/d for vertical wells and up to 250 boe/d for horizontal wells.

The Company has initiated a 3-D seismic program in the vicinity of the Provost area. Results are expected to be processed in Q4 and the Company is confident that this could lead to several new pools that can be exploited and tied into Company owned infrastructure.

The Company has also identified a development well location at Long Coulee targeting a previously abandoned pool which management believes to contain a significant amount of remaining oil that may be recovered using newer and innovative drilling and completion techniques. Initial production rates are expected to be in the range of 150 - 250 boe/d with as many as 4 vertical and/or horizontal wells to delineate the pool. The Company feels this prospect has the potential of becoming an additional core area.

Lastly, the Company's Q4 capital expenditure program will qualify as Canadian Exploration Expense (CEE) and Canadian Development Expenses (CDE) as required by Revenue Canada and will fulfill the company's remaining 2011 flow-through obligation.

2012 Outlook

Management anticipates a successful exit to year-end with encouraging results from its operational efforts over the past six months. There are currently 27 multi-zone drill locations identified by the Company in Provost on existing 3-D seismic. These locations combined with prospects anticipated from the new seismic data could result in a substantial drilling inventory for 2012 and beyond.

Looking forward, PetroSands is now a full-cycle exploration and production company with the technical credibility to capitalize on internally generated prospects. Management is well positioned to pursue future growth strategies through the execution of farm-in opportunities and the increased development and exploration of its core assets. The Company also continues to evaluate strategic property and corporate acquisition opportunities that is expected to create additional cash flow and increase the Company's production and reserves.

About PetroSands Resources (Canada) Inc.

PetroSands Resources (Canada) Inc. is a dynamic publicly traded junior oil producer targeting oil-based opportunities in Western Canada. The Company is focused on strategic oil based acquisitions within its core areas in addition to exploiting and exploring for incremental production, reserves and increasing cash flow. The Company currently has approximately 38.2 million common shares outstanding. PetroSands' shares are listed on the TSX-V under the trading symbol "PCA".

* Boe Presentation: The term BOE may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion of 6 million cubic feet (Mcf): 1 barrel (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.

Forward-Looking Statements:  This news release contains certain forward-looking statements, including but not limited to, the anticipated timing of the closing of the Disposition, management's assessment of future plans and operations, and the related expected success from drilling operations, expectations regarding future levels of production, revenues and drilling inventory, capital expenditures and the timing thereof and expected timing and results from operations, all of which involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond the Company's control. Such risks, uncertainties and assumptions include, without limitation, oil and gas exploration, development, exploitation, production, marketing, processing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports, including the Company's annual information form for the financial year ended December 31, 2009, on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (  All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. 


SOURCE PetroSands Resources (Canada) Inc.

For further information:

Greg T. Busby, President & CEO
Telephone:  (403) 265-2770
Fax:  (403) 265-2775
TSX Venture:  PCA

Profil de l'entreprise

PetroSands Resources (Canada) Inc.

Renseignements sur cet organisme


Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.