/NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA/
CALGARY, Nov. 27 /CNW/ - Velo Energy Inc. ("Velo" or "the Company") (TSX-V: VLO) announces its results for the three and nine months ended September 30, 2009.
The Company initiated significant changes to its management, board, strategy and corporate structure during the third quarter of 2009 that also continued subsequent to the end of the quarter. Highlights include the following:
- The appointment of a new senior management team, including five
officers and a number of consultants.
- The appointment of a new group of people to the five member board,
four of which are independent.
- A shift in strategy from exploration and production of primarily
natural gas in western Canada to exploration and production of
primarily oil in the UK North Sea.
- Subject to regulatory approval, the acquisition of North Sea Oil
Limited ("NSO") and North Sea Oil Exploration Limited ("NSOEL"). NSO
will provide Velo with a number of technical resources for its work
in the UK, including geological, geophysical and engineering
services. NSOEL is a UK registered company that entered into
arrangements to acquire interests in the Caledonia, Sheryl and
Catcher blocks ("CSC properties") in the UK North Sea, and signed a
Letter of Intent ("LOI") for the Banks property. The NSOEL
acquisition provides the Company with property interests in the UK
- The filing of a preliminary prospectus in all regulatory
jurisdictions in Canada, except for Quebec, to raise equity funds to
complete the purchase of interests for the CSC properties and begin
development work on Caledonia, and to acquire interests in the Banks
Arthur Millholland, President and CEO of Velo, stated, "The third quarter was extremely active and a solid foundation has been established by the new board and management, all within a period of several weeks."
The Interim Financial Statements and the Management Discussion and Analysis for the third quarter can be viewed at www.sedar.com under the Velo Energy Inc. listing.
About the Company
Velo is a growing North Sea focused oil and gas company with a core group of near and mid-term development properties. Velo's shares are listed for trading on the TSX Venture Exchange (TSX-V) under the symbol "VLO".
Forward Looking Statements
All statements included in this press release that address activities, events or developments that Velo expects, believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Velo's control, including: the impact of general economic conditions in the areas in which Velo operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with the oil and gas industry, therefore Velo's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Velo will derive therefrom. Such statements are based on assumptions made by Velo based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
On Behalf of the Board of Directors
Mr. Arthur Millholland, President and CEO
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 news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE VELO ENERGY INC.
For further information: For further information: Rob Elgie, Manager of Investor Relations, Phone: (403) 262-5441