Twoco Petroleums Ltd.
TSX VENTURE : TWO

Twoco Petroleums Ltd.

July 20, 2009 13:51 ET

Twoco Petroleums Ltd. Announces Asset Sale & Farm-in Arrangement

CALGARY, ALBERTA--(Marketwire - July 20, 2009) - Twoco Petroleums Ltd. ("Twoco") (TSX VENTURE:TWO) is pleased to announce that further to its news release dated June 26, 2009, Twoco has closed an arm's length disposition of 3.5% of its petroleum and natural gas assets for cash consideration of $1,925,000, subject to adjustment, to Poplar Creek Resources Inc. ("Poplar Creek") (TSX Venture - PCK). Poplar Creek has the right to acquire up to an additional 16% of Twoco's assets on similar terms and conditions.

Twoco has also entered into a Farm-in Agreement with Poplar Creek whereby Twoco will drill 2 wells at Twoco's risk and expense to earn 50% of Poplar Creek's working interest in each section of land drilled.

Twoco is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in the Province of Alberta. Twoco has 14,941,406 common shares issued and outstanding as at today's date.

In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

Certain information set forth in this news release contains 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 Twoco'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. Twoco'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 Twoco will derive therefrom. Twoco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws.

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

  • Twoco Petroleums Ltd.
    Wayne A. Malinowski
    President and Chief Executive Officer
    (403) 231-8653
    (403) 237-6048 (FAX)
    Website: www.twoco.ca