CALGARY, Dec. 6, 2012 /CNW/ - (TSXV: BRX) Brixton Energy Corp. ("Brixton") is pleased to announce that management has completed its 2013 business plan and, has approached the services of multiple financial groups capable of delivering a line of credit up to $15 million. The company's 2013 business plan includes the purchase of a turnkey production package in the Greater Red Earth area which consists of 150+ boe / day production and, includes multiple production assets over a large land base. Brixton's offering of $ 4.5 million was accepted by the private energy company and, a purchase sales agreement is currently underway. (Additional details will be released at a later date) The purchase will include strategic process and delivery infrastructure contingent to the company's recently negotiated farm in properties (22.4 sections) in the Greater Red Earth area and will work to significantly reduce development costs in this area moving forward.
The 2013 development plan includes 4 drills picked from 3D seismic and data from offset wells. Brixton and its business partners have 2 Keg river drill targets picked in the Red Earth area. Estimated costs to drill and put into production is $1.8 million per well. Based off of information from offset wells, initial production rates of new drills are expected between 125 - 300 bbl /day. The company also plans to drill 2 Leduc targets on its Sturgeon lake property. These Leduc drills are estimated to cost $2.6 million per well and, data taken from offset production wells indicates initial rates up to 1500 bbl / day and, cumulative production up to 2.4 million barrels. Brixton expects to have a respective, minimum production of 500 Bbl / day by the end of 2013.
Brixton also wishes to announce a $ 125,000 private placement which will consist of 2.5 million units at $ .05 with 2.5 million warrants to purchase an additional 2.5 million units at $ .15 for a period of 1 year.
On behalf of Brixton Energy Corp.
Mr. Matthew Dodwell, Vice President of Corporate Development
We seek Safe Harbor
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SOURCE: Brixton Energy Corp.
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