Poplar Creek Resources Inc.
TSX VENTURE : PCK

November 09, 2009 11:58 ET

Poplar Creek Resources Inc. Announces Signing of Joint Venture and Participation Agreement with ELM Energy Management Ltd.

CALGARY, ALBERTA--(Marketwire - Nov. 9, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA 

Further to its news releases dated June 29, 2009, July 20, 2009 and October 19, 2009, Poplar Creek Resources Ltd. ("Poplar Creek") (TSX VENTURE:PCK) is pleased to announce that it has entered into a new Joint Venture and Participation Agreement (the "Participation Agreement") with ELM Energy Management Ltd. ("ELM") whereby, subject to certain conditions, including ELM raising $3,025,000 by no later than December 14, 2009, ELM will participate in a farm-in on the lands of Twoco Petroleum Ltd. ("Twoco") and Poplar Creek will acquire an additional interest in all other Twoco assets, pursuant to the farm-in agreement entered into by Poplar Creek and Twoco and announced on October 19, 2009 (the "Farm-in Agreement").

Pursuant to the terms of the Participation Agreement, ELM will have until December 14, 2009 to raise $3,025,000 in order to fund the drilling of the first series of wells. Upon the drilling of such wells, ELM will earn an interest in the lands drilled pursuant to the Participation Agreement and Farm-in Agreement and Poplar will acquire an additional 5.5% interest in all other Twoco assets. Subsequent to the drilling of the first series of wells, ELM has two successive options to further participate in a farm-in on Twoco's lands and thereby earn a further interest in the lands drilled and Poplar will earn an additional 5.5% interest in all other Twoco assets. Each such successive option requires ELM to commit to an additional expenditure of $3,025,000 to fund the additional drilling on Twoco's lands. If ELM fully exercises its options to participate in a farm-in on the Twoco lands, Poplar Creek will own a 20% interest in all of Twoco's assets, excluding lands drilled pursuant to the Participation Agreement. The 20% interest is comprised of the 3.5% interest purchased on July 16, 2009 and the additional 16.5% interest to be acquired by way of the Farm-in Agreement. If ELM raises the initial $3,025,000, it is expected the drilling program will be commenced as soon as possible after December 15, 2009.

Forward-looking statements:

Certain information set forth in this news release contains forward-looking statements and information ("forward-looking statements"). More particularly, this news release contains statements concerning drilling plans and the purchase and sale of additional interests in Twoco's assets. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Poplar Creek's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Poplar Creek's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so what benefits Poplar Creek will derive therefrom. More detailed information about potential factors that could affect actual results is included in the documents filed from time to time by Poplar Creek on www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Poplar Creek does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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.

Contact Information

  • Poplar Creek Resources Inc.
    John Carruthers
    CEO
    (403) 875-1821
    or
    Poplar Creek Resources Inc.
    Richard Edgar
    President
    (403) 616-5387