Drift Lake Resources Inc.
TSX VENTURE : DLA

May 09, 2011 17:03 ET

Drift Lake Announces New Vice President Exploration and South American Manager and Prospect Farmout Agreement

TORONTO, ONTARIO--(Marketwire - May 9, 2011) - Drift Lake Resources Inc. (TSX VENTURE:DLA) ("Drift Lake" or the "Company") is pleased to announce that Phil de Gruyter has joined the Company as Vice President of Exploration and South American Manager. Mr. de Gruyter has been involved in exploration for oil and gas in South America for over 25 years, in Colombia, Peru, Venezuela and Bolivia (he was born and raised in Colombia).

Drift Lake Resources' CEO, Doug Manner, said, "We are extremely fortunate to have Phil join us at Drift Lake. His track record as an oil finder is exceptional and his numerous years living in Colombia and working the various South American basins will be invaluable in reaching the Company's exploration goals. Phil's extensive technical understanding, experience and knowledge of the business environment and procedures in the various countries in which Drift Lake will be active are key to the Company's future success."

Mr. de Gruyter comes to Drift Lake from Talisman Energy and Talisman (Colombia) Oil & Gas where for the past 10 years he helped build their Latin American program. He spent two years as a complex trend consultant and eight years as Exploration Manager and Technical Lead. Mr. de Gruyter played a major role in starting and growing the Peruvian and Colombian portfolios for Talisman, resulting in the overall acquisition of 19 blocks with over 21 million gross acres. From this portfolio, de Gruyter was directly responsible for finding over 450 MMBO from 9 discoveries with a 75% success rate (includes strat wells). Under de Gruyter's leadership, the Colombian exploration effort became Talisman's most successful 2010 international exploration program. The exploration budget grew by a factor of five while exceeding the annual reserve add goal by ten fold via discoveries that will drive steady production growth. Discoveries during his time at Talisman included Situche, Huron, Akacias and Guairuro. In addition to the high-return growth via exploration, de Gruyter also laid the groundwork for significant M&A growth including assets in Peru from Occidental Petroleum and assets in Colombia from BPX. The BPX acquisition was concluded in 2010 and renamed Equión Energía. The acquisition provided exploration upside, 12,500 BOEPD net production and a strategic position in Colombia's major pipelines.

From 1991 to 2001, de Gruyter worked for Maxus Energy Corporation (bought by YPF in 1995 and Repsol in 1998-99). During that period he was one of the principals behind multiple discoveries in Colombia, Venezuela and Bolivia. Discoveries included Volcanera, Capachos, Tropical and Margarita. Volcanera-1 was a 19,103-foot, pioneer, foothills, gas-condensate discovery that was granted commerciality in May 1997 with recoverable reserve estimates of 5 TCF and 250 MMBO. The Volcanera discovery led to finding the Floreña and Pauto Sur Fields. The Tropical/Quiriquire field in Venezuela was a world-class light oil discovery with flow-rates over 7,100 BOPD and reserve estimates in excess of 145 MMBO. The Margarita-X1 discovery, in Bolivia, recorded flow-rates of over 20 mmcf per day and 740 barrels of condensate per day and was described as the largest onshore gas find in South America with recoverable reserve estimates in excess of 10.5 TCF.

Mr. de Gruyter's first international assignment began in 1986, working the Hocol/Tenneco Colombia acreage. He was involved in nine discovery wells with a 69% success rate. The Hocol assets were ultimately sold to Royal Dutch Shell in 1989 for $500 MM. He began his career in the Rocky Mountain area with Exxon and then Tenneco Oil Company from 1980 to 1986. Mr. de Gruyter will continue to reside in South America.

Drift Lake is also pleased to announce that its US subsidiary, Northbrook Energy Inc, (NEI), has entered into a farmout Agreement with an arms-length party for its ownership interests in several leases located in Marion County, Texas. NEI will receive a cash payment of $400,000 (US) upon closing and will retain a 15% working interest in the initial test well after payout and a 15% working interest in all future development wells. In addition, NEI will receive an overriding royalty interest, ranging up to 2% depending on the lease, in all oil and gas produced. The Agreement is expected to close within 30 days. This transaction fits with the NEI business plan to farmout 100% of the economic risk of drilling and completing the exploration wells while retaining the right to proportionately participate in the subsequent development.

About Drift Lake Resources

Drift Lake Resources is focused on oil and gas exploration and development opportunities in South America. Management has decades of experience in the Company's focus countries in evaluating hydrocarbon producing basins and identifying exploration opportunities.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties.

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

  • Drift Lake Resources Inc.
    360 Bay Street, Suite 500
    Toronto, Ontario, M5H 2V6
    Keith Spickelmier
    Executive Chairman
    713-248-5981