/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
KELOWNA, BC, June 16 /CNW/ - Georox Resources Inc. ("Georox" or the "Company") (GXR: TSX-V; OF6A: FRA) is pleased to announce that it signed a Farmout Agreement ("Agreement") with a company in the Province of Alberta for the aggregate fixed cost of $220,000. The Agreement will enable the Company to earn a 25% working interest in the Farmout Lands which consist of 160 acres located in the Lloydminster area of Northern Alberta.
Pursuant to the Agreement once Georox completes its obligations by the payment of $220,000, the Farmor shall assign to Georox its earned interest in the Farmout Lands subject to any Crown royalties.
The overall plan is to re-enter, re-complete/workover, equip and produce via high volume lift, up to 5 potential Sparky heavy oil wells. Success will eventually lead to infill drilling on a reduced well spacing, which will be determined by recovery per well, followed by the implementation of a water flood. The potential is a gross incremental recovery of 800 M Bbls of oil (Georox's 25% share would be 200 M Bbls of Oil) on the subject lands.
Georox's contribution will be used as part of a $440,000 initial work program committed to by the joint venture partners, which includes the re-entering of 2 wells in Phase 1 of the program. Upon successful re-completion and equipping, the well's production will be analyzed and evaluated for 2 months. Phase 2 will include the re-entering of 3 more wells in a similar manner as Phase 1 except one of the wells will be completed as a pressure maintenance water injection well, subject to the approval of a waterflood application by the Energy Resources Conservation Board.
This acquisition is an important move in the growth of the company to participate in a low-risk/high-growth potential development 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.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, 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 Company's expectations are exploration risks detailed from time to time in the filings made by the Company 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.
SOURCE Georox Resources Inc.
For further information: For further information: Burkhard Franz, President/CEO, Georox Resources, Phone: (250) 712-2213