Kierland Resources Ltd.

January 15, 2010 12:26 ET

Kierland Resources Ltd. Acquires PrivateCo.

CALGARY, ALBERTA--(Marketwire - Jan. 15, 2010) - Kierland Resources Ltd. ("Kierland" or the "Company") (TSX VENTURE:KIR) announces that its share purchase agreement for the purchase of 96% of the issued shares of a privately owned company ("PrivateCo") with oil and gas properties in Saskatchewan (the "Transaction") has been closed. The purchase of PrivateCo by Kierland has been satisfied through the issuance of 14.1M Common Shares of Kierland to the other vendors at a deemed price of $0.10 (Cdn) per share with a four month hold period, assumption of PrivateCo's bank debt of approximately $800,000 (Cdn) and payment of cash of $1,000,000 (Cdn) to PrivateCo.

Highlights of the acquisition of PrivateCo by Kierland:

700 mccf/d of natural gas - 116 boe/d equivalent

5.8 year reserve life index

32,000 gross/ 31,080 net acres undeveloped land

Richard J. Boswell, President and CEO stated: "We are pleased about the acquisition of PrivateCo. There are currently 37 wells of which 14 are standing. Kierland anticipates in the near future to complete and tie in these 14 wells, optimize existing production by adding compression, and review the prospects of drilling Viking and Milk River on its substantial undeveloped land base of 51 Sections. Kierland expects to increase production from the PrivateCo acquisition at a capital cost of one half million. The PrivateCo acquisition also accrues tax pools in the approximate amount of $4.5 million."

The Transaction has received conditional approval from the TSX Venture Exchange.

About Kierland Resources Ltd.

Kierland Resources Ltd. is a publicly traded junior oil and gas company focused on exploration and development of oil and natural gas including Saskatchewan and Alberta. The Company remains focused on strategic acquisitions and aggressively expanding production, reserves and opportunistic transactions in this sector.

Forward-Looking Statements and Information: This press release contains certain forward-looking statements and information ("forward-looking statements") within the meaning of such statements under applicable securities law including management's assessment of the Company's properties, production and prospects. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "design", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this news release contains forward-looking statements and information with respect to (iv) the results of drilling and further development on, and the ability to realize any additional future production from, the Company's farm-in lands and other conventional oil and gas properties described in this news release, including the Company's ability to fund future developments. These statements are only predictions. 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 projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of oil sands and conventional oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, the possibility that royalties and other government levies could be increased, fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an oil focused enterprise, the Company faces risks, including those associated with exploration, development, approvals and the ability to access sufficient capital from external sources. Anticipated exploration and development plans relating to the Company's properties are subject to change. For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements, management discussion and analysis and annual information form for the year ended December 31, 2008 as well as the Company's management discussion and analysis for the period ended September 30, 2009, all of which are available at The Company undertakes no obligation to update such forward-looking statements or information if circumstances or management's estimates or opinions should change, unless required by law.

Issued Common Shares: 57,752,307

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.

Contact Information

  • Kierland Resources Ltd.
    Richard J. Boswell
    President and Chief Executive Officer
    (403) 510-2957
    Kierland Resources Ltd.
    2nd Floor, 744 4th Avenue SW
    Calgary, Alberta T2P 3T4