Jaguar Resources Inc.

Jaguar Resources Inc.

June 29, 2015 19:02 ET

Jaguar Resources Inc. Provides Update on Bannock Creek Exploration Well, and Announces a 4 Well Drilling Program and an Option for 6 More Wells

CALGARY, ALBERTA--(Marketwired - June 29, 2015) - Jaguar Resources Inc. (Jaguar or the Company) (TSX VENTURE:JRI) is pleased to announce the commencement a four (4) well exploration Drilling Program at its Bannock Creek Property in the Province of Saskatchewan. This exploration well program, operated by Jaguar Resources, is anticipated to commence in the end of July. Jaguar Resources has a 50% interest in the exploration drilling program.

These wells are estimated to cost approximately $830,000 per well to drill, tie-in and complete. Based on current commodity prices the proposed drilling program would provide the Company with estimated netback of approximately $35 per barrel and establish a core operating area for expanded future operations. The Company estimates initial production rates of a successful well could be ranging between 100 to 150 barrels per day per well. Jaguar has arranged a financing facility to drill a four (4) well exploration program it has selected from the recent seismic that has been shot and interpreted on Bannock Creek. Drilling will commence the end of July 2015. Jaguar has an option with the drilling company to drill 6 more wells. Jaguar has surveyed 10 locations as of June 27, 2015.

The exploration oil well program has been selected following the recently completed 2D seismic program which was designed to identify and confirm closure for potential light oil traps in the stacked Red River, Winnipeg and Deadwood Formations of the Northeastern Williston Basin. The Company's first exploration wells which will be drilled and completed conventionally to a depth of less than 1,000 meters.

The initial non-operated 9-5 Bannock Creek exploration well, which was non operated by Jaguar, in northeast Saskatchewan which commenced drilling on May 12, 2015 experienced significant operational difficulties. The well did not reach the intended zones and was subsequently plugged and abandoned by the operator.

Jaguar Resources and Shadow Tree Income Fund L.L.P. (Shadow Tree), a fund managed by Shadow Tree Capital Management LLC, agreed to finance the Company's 50% of the AFE and the well that was drilled May 12, 2015. The Term Loan shall be secured by the general security agreement granting a security interest over all present and after-acquired personal property of Jaguar.

About Jaguar

Jaguar's business strategy is to seek to provide shareholders with growth by exploring the existing assets in the Saskatchewan Little Swan and Bannock Creek plays. As part of its corporate strategy of acquiring additional assets, the Company is in the process of evaluating several potential transactions which individually or together could be material. The Company cannot predict whether any current or future potential opportunities will result in one or more transactions involving the Company.

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.

Forward Looking Information

This news release contains forwardlooking statements and forwardlooking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forwardlooking statements or information. More particularly and without limitation, this news release contains forwardlooking statements and information relating to the Company's development plans including drilling the exploration well at Bannock Creek, plans to mobilize a drilling rig in the coming months, management's interpretation of the 2D seismic data, the potential and likelihood of any geological structure on the Company's properties containing hydrocarbons, and the identification of the location of the first exploration well at Bannock Creek. The forwardlooking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company having adequate financial resources to fund operations and development on its properties, that the results of the 2D seismic program is accurate, that the interpreted geological structure is sufficiently similar to other known structures such that analogies are appropriate, that Shadow Tree will not enforce its security and that the Company will receive all regulatory and other approvals required to drill the exploration well. Although management of 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 forwardlooking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forwardlooking 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 Company's ability to continue operations without adequate capital, the Company's ability to raise further capital, the Company's ability to efficiently and successful explore and develop its properties, availability of drilling rigs, failure to interpret geological and geophysical information accurately, and the likelihood of those or any geological structures containing hydrocarbons. Accordingly, readers should not place undue reliance on the forwardlooking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forwardlooking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forwardlooking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the TSXV. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Contact Information

  • Jaguar Resources Inc.
    Corbin Blume
    President & CEO
    Main Phone (587) 350-7500
    (587) 350-7505 (FAX)

    Jaguar Resources Inc.
    730, 1015 - 4th Street SW
    Calgary, Alberta T2P 2V7