Nextraction Energy Corp.

Nextraction Energy Corp.

January 23, 2013 09:00 ET

Nextraction Energy Corp. Announces Closing of Private Company Acquisition and Addition of Vice President Exploration

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2013) -


Nextraction Energy Corp. (TSX VENTURE:NE) (the "Company" or "Nextraction") is pleased to announce that it has closed its previously announced acquisition (the "Acquisition") of Cowboy Exploration Ltd., a closely held private oil and gas company ("Cowboy"). Pursuant to the terms of the agreement, shareholders representing 92% of the outstanding Cowboy shares have tendered to the Offer and Nextraction has issued an aggregate of 3,501,334 Common Shares to former Cowboy shareholders as payment for their Cowboy shares tendered under the Acquisition. All necessary consents and approvals have been obtained, including those of the TSX Venture Exchange.

As the offer was accepted by the holders of more than 90% of the shares of Cowboy that were subject to the offer, the Company intends to exercise its rights under the compulsory acquisition provisions of the Business Corporations Act (Alberta) to acquire the remaining shares of Cowboy that were not tendered to the Nextraction offer. A notice of compulsory acquisition will be mailed promptly to all remaining shareholders of Cowboy, other than Nextraction.

The Acquisition provides a substantial expansion to Nextraction's Alberta asset base, increasing the Company's net land position to 26.625 net sections from the current 3.125 net sections, and significantly increases Nextraction's horizontal light oil drilling inventory potential in eastern Alberta from 21 net to 46 net locations. Cowboy's 3 main properties are all operated with a high-working interest, and will allow Nextraction, as the new operator, the flexibility to develop the assets in a timely and appropriate manner. To complement the Company's successful light oil development property at Provost, the Acquisition adds 2 core areas of low to moderate risk light oil development prospects in central and southern Alberta and provides a significant exploration land position in central Alberta.

Cowboy's Eyremore property, located in southern Alberta, consists of 3 operated sections (2.9 net) of Crown land with a 96% average working interest targeting light oil in the Glauconite Formation. There is currently 1 vertical producing oil well on the property and current spacing approvals allow for up to 19 horizontal development wells. Horizontal development of the Glauconite formation has been occurring 4 townships away from the acquired property with excellent success.

In central Alberta, the Edson property consists of an operated 1.5 sections of Crown land, having a 100% working interest and multi-zone potential including light oil from the Cardium Formation. There is currently 1 standing well on the property with numerous pay zones indicated on logs. Successful horizontal development of the Cardium is occurring within 2 miles of the Cowboy lands and there is potential to drill up to 6 Cardium horizontal oil wells on the acquired land.

Also in central Alberta, at the Chip Lake property Nextraction has acquired an operated 17.75 sections (12.375 net) of Crown land with a 70% average working interest having multi-zone light oil exploration potential in the Rock Creek and Blueridge (Nisku) Formations. Rock Creek horizontal light oil drilling is in its early stage of development 6 miles directly south of the acquired property, with encouraging success being realized from recent activity.

In conjunction with the Cowboy acquisition, William Pedersen has joined the Nextraction management team as Vice President of Exploration. Mr. Pedersen is a geoscientist with over 29 years of experience in the oil and gas industry and has been the President & CEO of Cowboy for the past 8 years. Mr. Pedersen has a track record of successfully growing production and creating shareholder value in a number of junior oil and gas companies.

"We are very pleased to close the acquisition of Cowboy Exploration, as it adds a significant inventory of land and light oil drilling locations to the Company's portfolio. We are excited to welcome Mr. Pedersen to the management team as VP Exploration as his addition fills a critical corporate need. His extensive geological experience in western Canada, specifically with the Cowboy assets and the Provost area, will immediately expedite and facilitate a more rapid corporate growth and reserve inventory increase for Nextraction," stated Company President, Kent Edney. "With over 8 years of light oil drilling inventory and a well-rounded and experienced technical team, Nextraction is well positioned to focus on the execution of our strategy as a high growth, oil weighted company."

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 the Western Canadian Basin. The Company's model is the "next round of extraction on known plays." Nextraction targets oil focused projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects.


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 and the anticipated completion of the Acquisition. 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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