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KELOWNA, B.C., July 15, 2014 /CNW/ - Georox Resources Inc. ("Georox" or the "Corporation") (GXR:TSX-V; OF6A:FRA) has completed an independent geological study of the Corporation's Red Earth property in northwest Alberta. Red Earth was acquired for $6.1 million on May 9 with an effective date of April 1, 2014 as part of the Red Earth/Otter package. The Red Earth area is known for its light oil production from the Slave Point and Granite Wash formations. Both formations are present on Georox' land.
Georox produces primarily from the Granite Wash Q4Q Pool that was discovered in 2004 and contains an Upper and Middle Sand interval. Eight wells are currently producing from this pool and one well is producing from the Slave Point formation. Correlations to Slave Point production by Pennwest and other producers to the north and west of the property indicate that a Slave Point horizontal well should be a target well in this field. Total production from the Red Earth field is currently averaging 150 boepd.
In Summary the geological study recommends:
1) To develop two additional locations from the upper sand sequence in the Granite Wash Q4Q pool where the majority of the production is coming from.
2) To target the middle interval of the Slave Point formation for a horizontal well that should parallel along the east side of Section 11 running in a north to south orientation.
3) To work over and frac two locations to increase productivity.
4) To convert one or two marginal oil producers to water injectors to dispose of produced water to:
a) provide the existing oil reservoir with pressure support that may increase recovery factors up to 15% greater that the primary recovery predicted for the pool.
b) eliminate most of the 3rd party processing and water disposal fees (reduce operating costs by up to $12.00/bbl of oil).
Georox is a Canadian natural resource company engaged in the acquisition, exploration and development of oil and gas properties in Western Canada.
Production volumes are commonly expressed on a barrel of oil equivalent ("BOE") basis whereby natural gas volumes are converted at a ratio of six thousand cubic feet to one barrel of oil. The intention is to convert oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. The term BOE may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalent method and does not represent an economic value equivalency at the wellhead.
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. More particularly, it contains forward-looking statements concerning: (i) production (ii) planned drilling, development and waterflood activities, (iii) the potential number of drilling locations at certain of the Transactions properties, and (v) potential development opportunities associated with the Transaction.
Although Georox believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Georox can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox 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 expressly required by Canadian securities law.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States. The Units (or constituent securities) have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Georox Resources Inc.
For further information: Burkhard Franz, President and Chief Executive Officer, Tel: (250) 712-2213, Fax: (250) 712-2215, Website: www.georoxresources.com