CALGARY, March 30, 2012 /CNW/ - PanTerra Resource Corp. ("PanTerra" or the "Company") announces that it has entered into a joint venture agreement to develop its central Alberta oil assets. PanTerra's joint venture partner will pay one hundred percent of the cost to drill and complete and equip each well drilled at the Company's Tomahawk property located west of Edmonton. For doing so, the joint venture partner will earn a straight up 55% of PanTerra's Pre-Farmout interest in the spacing unit for each well drilled (based upon an initial 40 acre well spacing), while PanTerra will retain 45% of its Pre-Farmout interest. Upon repayment of a premium associated with the joint venture partner's cost of capital, payable out of the joint venture partner's 55% share of net production revenue from the wells drilled, PanTerra's interest will increase to 50% of its Pre-Farmout interest in each spacing unit drilled. The initial phase of the joint venture will consist of a three well program which will be the first of multiple phases planned for this general area which could see the drilling of in excess of fifteen wells. PanTerra will continue as the 'Operator' through all phases of the project.
This program is expected to increase PanTerra's monthly revenue as time progresses and as more wells are drilled, all without any capital investment on PanTerra's part.
PanTerra is a diversified junior public oil and gas company listed on the TSX Venture Exchange ("TSXV") under the symbol "PRC", with holdings in both conventional and unconventional projects in Western Canada. The Corporation has an operated production base of 85 BOPD and 100mcf/day gas (based on field estimates) with excellent optimization and exploitation potential. Company information can be found at: www.panterraresource.com.
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.
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of the expenditures and other opportunities which may become available to the Corporation.
For further information:
Fred P. Rumak P.Geol.
President and C.E.O. at 403-261-5900
Jake Pronk P. Geol
V.P. Exploration at 403-261-5900