CALGARY, Sept. 16 /CNW/ - Diaz Resources Ltd. (TSX: DZR) is pleased to report today that the Company has closed the sale of a 43.75% interest in 6,356 acres of oil and gas leases located on the Eagle Ford oil shale play in Texas, for net proceeds of CDN $810,712. Diaz retains a 6.25% interest in the property.
In addition to the cash received, the purchaser will pay for Diaz's 6.25% interest through the first USD $4.3 million of gross expenditures on projects to develop the property.
The proceeds from the sale will be used for general purposes and to reduce Diaz's bank debt. Diaz's long term plan for its U.S. properties is to dispose of all non-core assets with the majority of the proceeds to be used in the development of Diaz's oil plays in Canada and to reduce Diaz's bank debt.
Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on oil development and exploration in Alberta, Saskatchewan and Texas.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing 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, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.diazresources.com). 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.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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SOURCE DIAZ RESOURCES LTD.
For further information: For further information: Robert W. Lamond, Chairman, or Donald K. Clark, Chief Operating Officer, DIAZ RESOURCES LTD., Telephone: (403) 269-9889, Fax: (403) 269-9890, Website: www.diazresources.com, Email: firstname.lastname@example.org, TSX: DZR