PRD Energy Inc.
TSX VENTURE : PRD

PRD Energy Inc.

August 10, 2012 09:17 ET

PRD Energy Announces Data Licence Arrangements With ExxonMobil

CALGARY, ALBERTA--(Marketwire - Aug. 10, 2012) - PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announced that its wholly owned subsidiary, PRD Energy GmbH, has entered into two definitive agreements with ExxonMobil Production Deutschland GmbH ("ExxonMobil") to license all seismic, geological and production data held by ExxonMobil relating to PRD's five production licences covering approximately 28,300 acres in the state of Lower Saxony, Germany.

Highlights

  • These arrangements provide PRD with access to historic seismic, geological and production data.
  • The licensing of this data materially accelerates PRD's development plans in Germany relative to acquiring the data by other means which would have taken several years to replicate.
  • These arrangements also significantly decrease the risks and initial cash outlay to PRD of evaluating and bringing these abandoned oil fields back into production.

Licence Agreements

The first agreement grants PRD the use of all seismic, geological and production data held by ExxonMobil relating to three of PRD's existing production licences covering approximately 26,100 acres in the state of Lower Saxony, Germany. In exchange, PRD has agreed to disclose the results of its evaluations and granted ExxonMobil the right to participate as a working interest partner for up to a 50% interest in each field PRD decides to develop. Before commencing development activities, PRD must present a feasibility study and development plan to ExxonMobil following which ExxonMobil has 90 days to elect to participate in the first well for each development and again prior to casing the well upon payment of a penalty.

The second agreement grants PRD the use of all seismic, geological and production data held by ExxonMobil relating to two of PRD's existing production licences covering approximately 2,200 acres in the state of Lower Saxony, Germany. In exchange, PRD has agreed to disclose the results of its evaluations and pay ExxonMobil fixed cash amounts based on the volume of seismic data and well/production files PRD elects to utilize.

PRD is proceeding to evaluate the data and expects to make a decision in late 2012 or early 2013 whether to develop these fields.

About PRD Energy

PRD Energy Inc. is a Calgary based oil and gas company engaged in the exploration, development and acquisition of, natural gas and crude oil, principally in Europe. PRD Energy's common shares are listed on the TSX Venture Exchange with the symbol "PRD".

Forward looking information

This news release contains forward-looking information relating to the licensing, evaluation and use of seismic, geological and production data, decisions by the Company respecting the development of its production licences, future plans for the Company's business and operations, and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the type, quality and volume of data available; the time taken to evaluate such data; the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability to operate in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with the type, quality and volume of data available; the time taken to evaluate such data; instability of the economic and political environments in which the Company operates or owns interests; oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve and resource estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; the inability to settle the definitive terms of the farmout arrangements; failure to realize the anticipated benefits of acquisitions; delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources; reliance on key personnel; regulatory risks and delays; including risks relating to the acquisition of necessary licenses and permits; environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

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.

Contact Information

  • PRD Energy Inc.
    Michael Greenwood
    Chairman and Chief Executive Officer
    (403) 234-0501
    (403) 234-0511 (FAX)

    PRD Energy Inc.
    Mark Hornett
    President and Chief Operating Officer
    (403) 234-0501
    (403) 234-0511 (FAX)

    PRD Energy Inc.
    Jeff Scott
    Vice President, Finance and Chief Financial Officer
    (403) 234-0501
    (403) 234-0511 (FAX)