VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2012) - CaiTerra International Energy Corp. ("CaiTerra" or the "Company") (TSX VENTURE:CTI) is pleased to announce that it has entered into a letter agreement to acquire the undeveloped petroleum and natural gas rights in the Faust Area in north central Alberta from First Mountain Exploration Ltd. ("First Mountain") (TSX VENTURE:FMX). The purchase price for the assets is $2.5 million in cash, of which the Company has already paid a $250,000 initial deposit.
Completion of the transaction contemplated under the letter agreement is subject to the execution of a mutually acceptable definitive agreement which First Mountain and the Company have agreed to execute on or before October 5, 2012. Once executed, the definitive agreement shall be posted on the Company's profile at www.sedar.com. Completion of the transaction is also subject to satisfactory due diligence to be conducted by the Company and the necessary approval from the TSX Venture Exchange.
CaiTerra intends to explore and develop the Faust land, which are directly on trend with the Mooney Bluesky producing oilfield to the east.
Completion of the transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. The TSX Venture Exchange Inc. has in no way passed on the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning the Company's plans to negotiate the purchase of certain of assets from an independent third party. The Company cautions that there are no assurances or guarantees that the negotiations will result in a transaction or purchase of assets.
Although the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned.. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.