CALGARY, Oct. 5 /CNW/ - Result Energy Inc. ("Result" - TSX-V: RTE) advises that it has signed a letter of intent to sell all of its interests in the Horn River Basin of north-east BC for $11 million cash, with closing scheduled for October 13, 2009. The assets being disposed consist of 83 sections (43 net) of undeveloped land, and a 60% interest in an uncompleted vertical well bore. The transaction is subject to regulatory approval.
In addition to the cash consideration, Result will also receive an option to farm-in on the purchaser's interests in 5.5 sections in a Cardium light oil prospect in the Garrington area of central Alberta, and an option to purchase two additional oil producing assets.
Following closing of the transaction, Result will have no bank debt, a working capital surplus and access to a $4.3 million bank revolving operating facility (bearing interest at prime plus 1.5%). Result's current production capacity is natural gas weighted, and is approximately 600 boe/d. A total of 1,200 GJ per day (approximately 200 boed) have been hedged at $5.36 / GJ for the November 2009 to October, 2010 period.
Result's exploration and development plan will focus on high netback Cardium light oil plays at Pembina, Garrington and Kakwa as well as a Triassic light oil play at Sweeney in NW Alberta and its Bakken light oil prospect at Tatagwa, Saskatchewan.
Pursuant to his recent election to the Board of Directors, the Corporation has granted options to Roderick A. Ferguson to acquire 300,000 common shares of the Corporation at an exercise price of $0.10 per share, which options shall be exercisable in accordance with the Plan and shall all vest immediately. The options hereby granted shall expire in accordance with the Plan and not later than five years from the date of the grant.
Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements. In addition, Result has applied the industry standard of converting natural gas volumes at six thousand cubic feet per barrel (6 mcf/bbl) of natural gas to barrels of oil equivalence ("boe"). Boe units may be misleading, particularly if used in isolation
Neither 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 RESULT ENERGY INC.
For further information: For further information: William Matheson, President & CEO, Result Energy Inc., (403) 777-0007