CALGARY, ALBERTA--(Marketwire - Dec. 21, 2012) - The Company (TSX VENTURE:MES) is pleased to announce it has engaged M Partners of Toronto to lead a $1.5 million private placement of common share units, the proceeds of which will be used for initial development of the Company's assets in the East Coast Basin, New Zealand, and for general working capital purposes. The unit price is $0.065, consisting of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at a price of $0.13 per common share for a period of 24 months from the Closing Date.
The Company's New Zealand acreage (PEP 53806, awarded Nov 1, 2012) is located in the East Coast Basin, and covers 965 km². The primary prospects are the Whangai and Waipawa formations, widespread, highly fractured shales that have similar characteristics to the Bakken formation in North Dakota. Numerous surface oil seeps in the basin have been typed to both the Whangai and Waipawa formations, and samples gathered were light oil, upwards of 50 API gravity. The Whangai ranges in thickness from 300-600 m, about 10 times the thickness of the Bakken formation.
Permit 53806 is located between two permits held by Tag Oil that Apache Corporation recently farmed into and committed to a 4 well drilling exploration program, estimated to commence Q1 2013. Tag/Apache's acreage covers approximately 3700 km². TAG Oil's Corporate Presentation of October 2012, states the TAG/Apache Joint Venture internal estimates for OOIP on their acreage ranges from 250-500 bn bbls.
Marauder is a 50% owner of PEP 53806.
This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. 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 estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations 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.
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