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CALGARY, March 31 /CNW/ - One Exploration Inc. ("OneEx" or the "Corporation" - TSXV:OE.A) is pleased to announce that it has entered into an asset purchase agreement with an intermediate oil and gas producer to acquire a significant undeveloped land position and certain minor producing assets within its core Lochend Cardium light oil play in Southern Alberta. OneEx is purchasing 17 net (23 gross) sections of undeveloped land and approximately 50 boe/d of production for a cash purchase price of $7,500,000 and the issuance of $7,500,000 worth of Class A shares (26,251,313 Class A shares at a deemed price of $0.2857 per class A share, and approximately 1,312,566 Class A shares on a post-consolidation basis).
The transaction adds 17 net sections of operated, undeveloped acreage with working interests ranging from 60% to 100%. This strategic acquisition doubles the Corporation's existing undeveloped land position on an early stage Cardium light oil resource play at Lochend, Alberta. The prospective Cardium "A" sand at Lochend is analogous to the offsetting Cardium "A" sand trend at Garrington, with Lochend being at a much earlier stage of development.
Upon closing of this transaction OneEx will own 35 net sections (50 gross sections) on the Lochend Cardium trend. OneEx plans to commence a multi-well drilling program at Lochend in the second half of 2010. The acquisition is scheduled to close on or about April 30, 2010 and is subject to customary closing conditions as well as the approval of the TSX Venture Exchange Inc. ("TSXV").
One Exploration Inc. is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. OneEx has 242,698,877 Class A shares issued and outstanding that trade on the TSXV under the symbol OE.A. Additionally, it is expected that OneEx will shortly implement its previously announced share consolidation on the basis of one (1) new Class A share for each twenty (20) Class A shares currently issued and outstanding (the "Share Consolidation") and previously announced name change from "One Exploration Inc." to "TriOil Resources Ltd." (the "Name Change").
The asset acquisition represents a significant progression of management's business plan to build a high quality oil asset base with a focus on horizontal drilling and multi-frac completion applications. OneEx's growth strategy follows a balanced combination of exploitation, exploration and strategic acquisitions that increase the company's growth platform and oil weighting.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information concerning the completion of the acquisition of assets and the anticipated timing and completion of the Share Consolidation and Name Change.
The forward-looking information are based on certain key expectations and assumptions made by OneEx, including expectations and assumptions concerning timing of receipt of required regulatory and exchange approvals and the satisfaction of other conditions to the completion of the transactions contemplated above. Although OneEx believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because OneEx can give no assurance that they will prove to be correct.
Completion of the Share Consolidation and Name Change are subject to a number of conditions, including but not limited to the ability of the Corporation to maintain its TSX Venture Exchange Tier Maintenance Requirements post consolidation. There can be no assurance that the Share Consolidation or Name Change will be completed as proposed, or on a specific date, or at all. Further to this, there can be no assurances that the market price of the new Class A shares will increase as a result of the Share Consolidation. The marketability and trading liquidity of the consolidated shares of the Corporation may not improve as a result of the Share Consolidation. The Share Consolidation may result in some shareholders owning "odd lots" of less than 100 Class A shares which may be more difficult for such shareholders to sell or which may require greater transaction costs per share to sell.
Since forward-looking information addresses future events and conditions, by its very nature it involves 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 that required regulatory, exchange and third party approvals and consents are not obtained on terms satisfactory to the parties within the timelines provided for in the this news release and risks that other conditions to the completion of the transactions are not satisfied on the timelines set forth in this news release or at all.
Completion of the transactions contemplated herein are subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and satisfaction of the conditions set forth in the asset purchase agreement..
The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and OneEx undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Disclosure provided herein in respect of barrels of oil equivalent (boe) 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. Figures quoted may not add exactly due to rounding.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ONE EXPLORATION INC.
For further information: For further information: Russell J. Tripp, President & CEO, One Exploration Inc., Phone: (403) 265-4115