CALGARY, Aug. 12 /CNW/ - Petro Uno Resources Ltd ("Petro Uno") is pleased
to announce that it has entered into a Letter of Intent ("LOI") with Ward
Williston Oil Company ("Ward Williston") to purchase all Ward Williston's
interest in the McKinney Field, an oil and gas property ("the Property"),
located in Renville County, North Dakota, USA.
Under the terms of the LOI, Petro Uno intends to acquire a 100% interest
in the Property from its owner-operator Ward Williston, for consideration of
$1,850,000.00 USD cash.
Through the acquisition, Petro Uno is acquiring 14 wells in the Sherwood
sub-interval of the Mission Canyon Formation. The Sherwood/Fryburg interval is
the US equivalent of the Frobisher in Saskatchewan. The Sherwood is the most
prolific Mississippian reservoir in North Dakota. The field has one infill
vertical and two horizontal development locations. Petro Uno expects to use
state-of-the-art drilling techniques successfully applied in similar
reservoirs in Saskatchewan to increase production. The pool encompasses
approximately 960 acres and has an oil pay column of up to 46 feet.
The following is a summary of the material terms of the LOI:
a. Assets. On the Closing Date of the Purchase and Sale Agreement,
Petro Uno will purchase all of the assets of the McKinney Field
including leaseholds, rights in productions, contract rights,
easements, permits, wells, equipment, facilities and all remaining
b. Purchase Price. Petro Uno will pay $50,000.00 USD prior to the
Due Diligence and $1,800,000.00 USD at the Closing Date.
c. Due Diligence: The purchase is subject to completion of
satisfactory due diligence by Petro Uno.
d. Closing Date: September 15, 2009
The acquisition will have the following characteristics:
- Current Production: 39 Bbls/d light oil
- Reserves: 140,000 bbls (P+PA)
- Facilities and Infrastructure: US$600K
The transaction metrics are as follows:
- Production: $47,400 USD per producing BOD
- Reserves: $13 USD per BOD
About Petro Uno.
Petro Uno is a junior oil and gas company trading on the TSX Venture
Exchange under the symbol "PUP". Petro Uno currently produces approximately
35-40 BOD of light crude oil from wells located in Alberta, Canada. Petro Uno
is focusing on the Williston Basin in North East Saskatchewan and North
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved of the
contents of this press release. The TSX venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: William Ambrose, President and Chief Executive
Officer, 725, 435 - 4th Avenue S.W., Calgary, AB, T2P 3A8, (604) 844-2814