Unitech Energy sells Leadscan regional study and purchases gross overriding royalty and participation option

    CALGARY, Jan. 3 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV:
URX) is pleased to announce that it has entered into a Geological Consultancy
Agreement with a private oil and gas company ("PrivateCo") pursuant to which
Unitech agreed to generate a regional bypassed hydrocarbon study in
consideration for the sum of $795,000. Unitech used its proprietary image
analysis and pattern recognition system, called Leadscan, to generate the
geological study on approximately 9,000 wells within Townships 1 and 8, Ranges
1 to 11, W2M (the "Area") and targeted the Bakken, Frobisher and Midale
formations. The consideration payable to Unitech under the Geological
Consultancy Agreement was satisfied by a cash payment of $95,000 and the
granting by PrivateCo to Unitech of a gross overriding royalty ("GORR") and a
working interest participation option ("WIPO") on approximately 6,000 acres of
land in the Area. The terms of the WIPO as set out in the Farmout and
Participation Agreement entered into with PrivateCo are such that Unitech can
earn 9% of PrivateCo's working interest on any wells drilled on lands in the
Area currently held by PrivateCo by electing to pay 15% of PrivateCo's share
of the costs to drill any such wells. Unitech also entered into an Overriding
Royalty Agreement with PrivateCo which provides for the payment to Unitech of
a 3% GORR on PrivateCo's share of new production on the royalty lands in the
Area. There is no current production subject to the GORR or the WIPO and
Unitech will not be able to value the GORR and/or WIPO until such time as
production is achieved. The term of the GORR and the WIPO expire on
December 31, 2009, with Unitech retaining all interests earned under the
Farmout and Participation Agreement.

    About Unitech Energy Resources Inc.

    Unitech uses its proprietary image analysis and pattern recognition
system, called Leadscan, for a 'first look advantage' that drives Unitech's
exploration strategy. Please visit Unitech's website at www.leadscan.ca.
Shares of Unitech are listed for trading on the TSX Venture Exchange under the
symbol URX.

    Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is 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
anticipated in the forward-looking statements, which include but are not
limited to risks inherent in the oil and gas industry, regulatory and economic
risks, and risks associated with the company's ability to implement its
business plan. Unitech undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions should
change except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.

    The TSX Venture Exchange has not reviewed, and does not accept
    responsibility for, the adequacy or accuracy of this release.

For further information:

For further information: Unitech Energy Resources Inc.: Steve Price,
President, T (403) 236-1170, E steve.price@shaw.ca; CHF Investor Relations:
Robin Cook, Account Manager, T (416) 868-1079 (ext. 228), E robin@chfir.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890