CALGARY, ALBERTA--(Marketwired - Dec. 30, 2013) -
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Petroforte International Ltd. ("Petroforte" or the "Corporation") (TSX VENTURE:PFI) reports that it has sold its non-producing Lloydminster heavy oil properties to a private Saskatchewan-based company. The sale closed on December 17, 2013 for net proceeds of $561,000.
Allan King, President and CEO, commented, "The selling of the non-core non-producing Lloydminster properties allows us to concentrate on the development of the Flood assets early in the new year which will add to the excellent results we have experienced at our Brazeau River properties."
At Flood, Petroforte will commence development of the Montney oil property in Q1, 2014.
A water disposal well will be drilled in January 2014 and an application for water injection will be submitted to the Alberta Energy Regulator. The drilling of a total of four new oilwells and the reactivation of three existing shut-in oilwells is planned through Q2, 2014.
At Brazeau River, the 9-5 well was recompleted in the Cardium Formation in October coming on production at 220 barrels of oil and condensate per day and continues to free flow 100 barrels of light oil and condensate per day plus 800 mcf/d of sales gas. In November, Petroforte installed a gas compressor to improve operational efficiency and remove third party compression fees. At 2-5 Petroforte confirmed the presence of oil in two separate Belly River zones that do not have offsetting production. In total, the Company sees four separate Belly River intervals that are prospective for horizontal well, multi-stage frac development on its lands. In Q1, the 2-5 well will be recompleted in the Cardium Formation to offset the successful 9-5 well. At the December 18, 2013 Alberta land sale, Petroforte successfully acquired an additional quarter section of land to its Brazeau River inventory. The company is actively pursuing further lands in the area.
In total, Petroforte is now producing 430 BOE/D, 40% of which is light oil and condensate.
At Wapiti in west-central Alberta, the farm-in earning development well at 8-21-67-8W6 is expected to spud the second week of January 2014. The target is the Cardium Formation and the horizontal development well is planned to have a 1400m reach.
The first tranche of the Corporation's recently announced Private Placement closed on December 23rd. Pursuant to the offering a total of 17,875,000 equity units at a price of $0.20 per unit were issued. Each unit consists of one common share and one-half (1/2) of one common share purchase warrant. Each full Warrant entitles the holder to purchase one common share of the Corporation at $0.40 per share until March 31, 2016. Gross proceeds of $3.575MM were received. The Offering is expected to close on or before January 23, 2014, or such other earlier or later date as the Corporation determines and the TSX Venture Exchange (the "Exchange") allows.
As approved by the shareholders at the AGM on December 17th, on January 30, 2014 or such earlier or later date as the Company determines and the Exchange allows the:
- Company's issued and outstanding Shares will be consolidated on the basis of one (1) new common share of the Company for every six (6) existing Shares and;
- name of the Company will be changed from "Petroforte International Ltd." to "Canamax Energy Ltd."
Petroforte is a junior oil and gas company headquartered in Calgary, Alberta engaged in the exploration, development and production of hydrocarbons within Alberta.
Forward Looking Statements
This press release contains forward-looking statements relating to the completion of the Offering on the terms set forth herein, the anticipated closing date of the Offering and the use of proceeds from the Offering. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in Petroforte's Canadian securities filings. The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Petroforte disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Petroforte undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of the Corporation. The securities of the Corporation to be issued in connection with the Offering have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.