Border Petroleum Inc.
NEX BOARD : BOP.H

September 21, 2009 11:09 ET

Border Announces Multiple Transactions in Red Earth, Alberta Area

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Border Petroleum Inc. ("Border" or the "Corporation") (NEX:BOP.H) today announced details concerning a number of transactions in the Red Earth area of Alberta.

Border has entered into a purchase agreement dated September 12, 2009 (the "Purchase Agreement") with an arm's length private Alberta company ("PrivateCo") whereby Border and PrivateCo have agreed to jointly pursue oil and gas prospects in an established area of mutual interest in Read Earth, Alberta (the "AMI"). In addition, Border has agreed to acquire two quarter sections with well recompletion candidates on lands located within the AMI, as well as certain equipment, including pump jacks, pipe, and related surface equipment. The total consideration payable to PrivateCo for the asset acquisition is $500,000 comprised of a $150,000 cash deposit at closing and an additional $350,000 to be paid from cash flow generated from the first two recompletion candidates, if successful.

Border also announces that effective September 17, 2009, it has entered into a farm-in agreement on industry standard terms (the "Farm-In") with another arm's length private Alberta company. The Farm-In lands, comprised of two quarter sections located in the AMI, contain two additional recompletion candidates.

Additionally, Border has purchased a quarter section within the AMI at a recent land sale, which contains an additional recompletion candidate.

All recompletion activities in the AMI are planned for the first quarter of 2010 and will target the Slave Point formation.

About Border

Border is a Calgary, Alberta based oil exploration company.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Border will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Border.

Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Border Petroleum Inc.
    Tyler Cran
    President
    (403) 538-8441