VANCOUVER, Oct. 5, 2017 /CNW/ - Eros Resources Corp. (TSX.V: ERC) ("Eros" or the Company") is pleased to announce that it has entered into a Joint Operating Agreement (the "Agreement") with Westcore Energy Ltd. ("Westcore" or "WTR") and Saturn Oil + Gas Inc. ("Saturn" or "SMI") to develop three sections of land near Flaxcombe, Saskatchewan. Under the terms of the Agreement, each of Eros, Westcore and Saturn shall have a one-third (33.33%) working interest in the sections. This provides Eros with a direct interest in the future exploration results, reserve assessment and possible development within the Flaxcombe, heavy oil field. The three parties are currently preparing a budget and schedule to develop this ground.
The three sections are contiguous with Westcore's 100%-owned sections 12, 13 and 5, where Eros and Westcore are operating under a well-development agreement. Under this agreement, Eros funded the completion of three wells for $1.6 million to earn a 90% working interest until the capital investment is repaid, and a 50% working interest thereafter. In addition, Eros has the right of first refusal on two additional, three-well projects for the same consideration. On September 20th, 2017, Eros announced that well 9-13 had completed its initial 30-day production test, showing an average production rate of 80 barrels of oil per day (72 barrels to Eros). The two additional wells have been completed and brought on production. Once they have passed the initial 30-day test period, results will be made available.
Eros Resources Corp. is a well-financed Canadian public company focused on the exploration and development of resource projects in North America. Eros has as its prime business objective the identification, acquisition and exploration of advanced resource projects with a North American focus. A secondary focus of the Company is to make strategic investments with a global focus and a diverse commodity base. The Company's expertise in the resource sector supports the selection of these strategic investments.
On behalf of the Board of Directors of
Eros Resources Corp.,
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation, including, among other things, this press release includes references to mineral resources and future potential forecast economics of extracting those resources. There is no certainty that any portion of the resources will be confirmed with greater certainty. If confirmed, there is no certainty that it will be commercially viable to extract any portion of the resource. There is no certainty that access to the resource area will be re-established, and if access to the resource area is blocked for an extended period of time, or permanently, there is no certainty that any compensation will be received by the Company. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information, including the re-establishment of physical access to the property, the availability of adequate and secure sources of funding to construct the extraction facilities required to extract the mineral resources, prevailing commodity prices, the receipt of regulatory approvals, environmental risks and the performance of personnel. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
Oil and Gas Advisory
Production rates disclosed herein are preliminary and are not determinative of the rates at which the wells will continue to produce and decline thereafter and may not necessarily be indicative of the long-term performance or estimated ultimate recovery.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
SOURCE Eros Resources Corp.
For further information: Ron Stewart, President and CEO, [email protected], Suite 650, 1021 West Hastings St. Vancouver, BC, Canada V6E 0C3, 604-688-8115