Nextraction Energy Corp.

Nextraction Energy Corp.

October 31, 2011 09:00 ET

Nextraction and Magnum Announce Amendment to Joint Venture Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2011) - Nextraction Energy Corp. (TSX VENTURE:NE) ("Nextraction") is pleased to announce that it has come to an agreement with Magnum Energy Inc. (TSX VENTURE:MEN) ("Magnum") to amend its joint venture agreement ("JV Agreement") relating to its jointly owned Viking oil property located in the Provost Field in eastern Alberta, Canada (see news release dated February 3, 2011).

The original terms of the agreement called for Nextraction to drill, complete and tie in two horizontal wells at its sole expense, to earn a 50% working interest in each well and future development. Under the terms of the amendment, Nextraction immediately becomes vested in the Provost property; thereby decreasing the earn-in provision of the agreement from two wells to one well. In consideration of the reduction in the required number of horizontal wells to be drilled under the JV Agreement, Nextraction has agreed that the loan owed by Magnum to Nextraction be deemed to have been repaid in full as of October 1, 2011. The loan balance as at October 1, 2011 is approximately $1.19 million.

Reducing the earn-in commitment allows Nextraction to drill two wells (at 50% working interest) rather than one well for the same capital outlay, thereby increasing the production, reserves and value of the expenditure for Nextraction's shareholders.

Nextraction will complete, at its sole cost, the construction of a pipeline to tie-in the first horizontal well that has been completed (see News Release 11-17 dated October 6, 2011). The permitting of the pipeline is underway and Nextraction expects construction to be completed late in the fourth quarter. Upon the completion of the pipeline, Nextraction and Magnum will continue to advance the development of the Provost property.

In addition to developing the Provost light oil pool, Nextraction is also in production at its Pinedale Anticline resource play in Wyoming and is evaluating horizontal shale gas development on its lands in the southern Appalachian Basin of the eastern United States.

On behalf of the Board of Nextraction Energy Corp.

Mark S. Dolar, President and CEO

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and natural gas company engaged in the exploration and development of oil and natural gas resources in North America. The Company's model is the "next round of extraction on known plays". Nextraction targets projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects. In addition to the Provost pool, the Company is producing light oil and liquids rich gas at its Pinedale Anticline property in Wyoming. The Company also owns rights to develop shale gas in the southern Appalachian Basin of the eastern United States.


Certain statements made and information contained herein may constitute "forward-looking statements" or "forward- looking information" within the meaning of applicable securities legislation. These statements relate to future events or the Company's future performance. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "may have", "could", "would", "might" or "will" be taken, occur or be achieved. Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.

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.

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