VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2013) - CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX VENTURE:CTI) is pleased to announce that, further to its press release dated January 29, 2013, it has completed the disposition of 25% of its interests in certain undeveloped mineral rights in the Faust area of Alberta (the "Faust Property") to an arm's length Alberta private company (the "Purchaser").
The Faust Property was recently acquired by CaiTerra on December 14, 2012 for a total cash payment of CDN$2,500,000 and is located just north of the prolific Swan Hills oil field and west of Black Pearl Resources Inc.'s Mooney Pool producing oil property and south of the Town of Slave Lake. The lands forming the Faust Property are Crown leases with varying expiry dates. The Faust Property comprises approximately 18,600 net acres (approximately 30 sections) of lands of interest that are not subject to expiry for the next 3 years and a further 3,840 net acres (6 sections) of lands of interest that have been continued through to the end of April 2013.
The disposition was completed in accordance with the terms of a definitive purchase and sale agreement entered into with the Purchaser. At closing, the Purchaser purchased 25% of CaiTerra's interest in and to the Faust Property in consideration for a cash payment of CDN$1,000,000 (subject to adjustments). The Purchaser has the option to purchase an additional 25% of CaiTerra's interest in and to the Faust Property in consideration for an additional cash payment of CDN$1,000,000 (the "Option"). The Option must be exercised by notice in writing to CaiTerra on or before February 13, 2013 and the closing of the purchase and sale of such additional 25% interest contemplated by the Option shall occur on or before February 15, 2013. Further details regarding the terms of the transaction are set out in the definitive purchase and sale agreement which will be filed on CaiTerra's profile on SEDAR at www.sedar.com.
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 exercise of the Option, the timing and the anticipated closing date of the Option, and the Company's anticipated interests in the Faust Property. The Company cautions that there are no assurances or guarantees that the transaction will be completed as proposed or at all.
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.