Life Sciences Institute Inc.

Life Sciences Institute Inc.

January 31, 2011 19:42 ET

Life Sciences Announces Signing of a Non-Binding LOI to Acquire an Option to Earn a 35% Interest in the Eastern Cordillera Region of Colombia and Delay of SFOD Filing

CALGARY, ALBERTA--(Marketwire - Jan. 31, 2011) - Life Sciences Institute Inc. (TSX VENTURE:LSN) (the "Corporation" or 'LSN") is pleased to report that it has entered into a non-binding Letter of Intent with a private Colombian corporation to acquire an option to earn up to a 35% interest in an exploration block located in the Eastern Cordillera region of Colombia. If it earns the interest, the Company may, at its election, have the right to apply to the Colombian Ministry of Hydrocarbons to become operator of the block.

The Company continues its due diligence towards the execution of a definitive binding agreement.

The property is located in the center of Colombia, Southwest of Bogota in the Eastern Cordillera Basin. The exploration block is approximately 77,574 hectares in size and is located in close proximity to established oil pipelines and producing fields.

"Upon the successful conclusion of our due diligence related to the Colombian acquisition and completion of our obligations under the earn-in," stated Rob Thomas, President and Chief Executive Officer of LSN, "we will have added a complimentary asset to our core project in the Williston Basin of Saskatchewan. The two areas could represent a compelling mix of opportunities for our shareholders."

LSN currently holds a 100% working interest in 6,400 acres in Crown leases which were identified to be prospective for oil and gas. The primary targets being the Bird Bear-Madison and Bakken formations, previously detected with key geological observations, well log analysis and proprietary 2D seismic. The Company is scheduling to commence the licensing of two well locations in early February with drilling proposed for March of 2011.

"The lands held by LSN represent a significant opportunity," said Mr. Thomas, "we look forward to the completion of the previously announced change of business, as well as the proposed name change to Quattro Exploration and Production Ltd. These events, in conjunction with the proposed drilling program in Saskatchewan, if successful, are believed to be the beginning of a foundation for the Company's strategic growth."

In a press release dated January 26, 2011, the Company indicated that it anticipated filing the Short Form Offering Document ("SFOD") by the end of January. The filing of the SFOD has been delayed by third-party issues; once these delays are resolved, the Company will file the SFOD with the TSX Venture Exchange. It anticipates filing the SFOD before February 7, 2011.

Forward Looking Statements

Statements in this press release contain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, without limitation, statements with respect to: prospective completion of satisfactory due diligence regarding the Colombian assets, the entering into of a definitive binding agreement regarding the Colombian assets, possible exploration and production results from each of the Columbia and Saskatchewan prospects, timing and completion of the COB, the closing of the various offerings, the expected timing of the exploration and drilling programs and the approval of the TSX Venture Exchange. Readers are cautioned that assumptions used in the preparation of forward-looking information may prove to be incorrect. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors (many of which are beyond the control of the Corporation) that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration, development and production; delays or changes in plans; competition for and/or inability to retain drilling rigs and other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; risks associated to the uncertainty of reserve estimates; governmental regulation of the oil and gas industry, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; the uncertainty of estimates and projections of production, costs and expenses; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; incorrect assessments of the value of acquisitions; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; access to capital; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Corporation does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

The Change of Business

Investors are cautioned that, except as disclosed in the Management Information Circular and this press release, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of Life Sciences Institutes Inc. should be considered highly speculative.

Wolverton Securities Ltd., subject to completion of satisfactory due diligence, has agreed to act as sponsor to Life Sciences Institute Inc. in connection with the transaction. An Agreement to sponsor should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion.

All definitions not herein provided shall have the meaning ascribed to them in the Information Circular.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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

  • Life Sciences Institute Inc.
    Robert C. Thomas
    President and Chief Executive Officer
    (403) 247-4319