KELOWNA, BC, May 9, 2012 /CNW/ - Georox Resources Inc. ("Georox" or the "Corporation") (GXR:TSX-V; OF6A:FRA) is pleased to announce that it has signed a participation agreement with respect to a farm-in agreement on lands in the Coteau Lake area in southeastern Saskatchewan and northeast Montana.
The participation in the farm-in includes three and one-quarter sections of land (2080 gross acres) with the potential of high productivity light/medium (30 degree API) Mississippian oil. Georox will pay 100% of the farmee's 85% of the costs to drill, complete and test an "earning" horizontal exploration well to earn a 31.875% working interest before payout and 21.25% working interest after payout in the test well quarter section and one additional quarter section. Subsequent to Georox earning its initial interest in the farm-in lands, Georox may participate in option wells to earn a 31.875% before payout and 21.25% after payout in additional 320 acre blocks for each well drilled by paying 42.5% of the costs to drill, complete and equip such additional wells.
The contract depth of the initial earning well is approximately 1,975m and the estimated cost net to Georox to drill, complete and test is approximately $1.565 MM. This earning well is to be drilled immediately after spring break up in mid-May 2012. Three (3) additional earning well locations have been identified and are expected to be drilled subsequent to the drilling and testing of the first well.
This farm-in is considered by management to be a major strategic move in the growth of the Corporation and provides Georox with the opportunity to drill and participate, in a high-potential, light/medium oil potential exploration opportunity.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
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. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation with securities regulations.
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.
For further information:
Burkhard Franz, President and Chief Executive Officer
Tel: (250) 712-2213
Fax: (250) 712-2215