Realm Energy International Corporation
TSX VENTURE : RLM

Realm Energy International Corporation

September 21, 2011 05:55 ET

Realm Energy Announces Shale Concessions in Spain

WHITE ROCK, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2011) - Realm Energy International Corporation ("Realm Energy" or the "Company") (TSX VENTURE:RLM) (www.realmenergy.ca) is pleased to report on its successful land acquisition in Spain for shale gas exploration.

Realm Energy, in collaboration with Halliburton Consulting, has been evaluating shale plays in numerous sedimentary basins in Spain for approximately two years. Following this detailed evaluation, the Company submitted 10 applications in five discrete sedimentary basins, collectively comprising over 2.2 million acres (8,903 km2).

Realm Energy confirms it has now been formally awarded two permits, totaling 212,099 acres (858 km2) in the Cantabrian Basin of Northern Spain, for a period of six years.

Regarding the eight permit applications still in process, the Hydrocarbons Department of the Spanish Ministry of Industry, Tourism & Commerce has formally advised Realm Energy that it was also the successful applicant on six of the permits, which collectively total 1,512,383 acres (6,120 km2) and are now in process for formal award. Of the 10 permits applied for (covering 2.2 million acres), the success of only two permits (covering 503,887 acres (2,039 km2) is yet to be determined.

The minimum work programs on the 212,099 acres formally awarded and the 1,512,383 acres undergoing formal award, collectively 1,724,482 acres (6,978 km2), require the Company to acquire approximately 600 km of 2D seismic in the first two years. In years 3 & 4, the Company is required to acquire 300-900 km of 2D seismic, and drill and test three vertical wells. In years 5 & 6, the Company's minimum commitment is to drill and test five additional vertical wells. These selected permits all have excellent pipeline infrastructure.

The Company believes the shales in all concessions are thermally mature and may be prospective for natural gas production. Initial analysis of existing well logs indicates that primary targets are likely to be Eocene, Cretaceous and Carboniferous shales at depths ranging from 6,000-11,000 feet. Other preliminary mineralogy indications include:

  • Thickness: 600-1300 feet net
  • Kerogen Type: Type II/III
  • TOC: 1 - 8% wt
  • Porosity: 2 - 6%
  • Maturity: Ro ~ 1 - 2
  • Geomechanics: Brittle shales
  • Pressure: Normally pressured to over pressured

Craig Steinke, Chairman & CEO commented, "As a result of this recent success, Realm Energy is now well positioned in five discrete sedimentary basins making the Company one of the largest landholders for shale gas exploration in Spain. This presents a tremendous growth opportunity for the Company as Spain also has a proven and stable fiscal system that ranks in the top 10% worldwide. Economic conditions are also attractive, as Spain is currently dependent on imports for its natural gas supply, and gas prices in the country are typically at a premium to prices found elsewhere in Western Europe."

About Realm Energy

Realm Energy is a Canadian domiciled global energy company focused on driving the exploration and development of major shale plays throughout Europe and emerging countries. The Company presently has projects in Poland, Spain and Germany and is in the process of acquiring additional petroleum and natural gas rights in other European basins. Realm Energy is committed to leveraging the most advanced shale technology to bring these resources into production.

On August 26, 2011, Realm Energy announced it had reached an agreement with San Leon Energy plc ("San Leon") whereby San Leon will acquire all of the issued and outstanding shares of Realm Energy (the "Acquisition"). The Company has given notice that it intends to hold a special meeting on November 1, 2011 to seek shareholder approval for the Acquisition. Further information, with respect to the Acquisition, is available in the Company's press release dated August 26, 2011, which can be viewed at Realm Energy's website, www.realmenergy.ca, or at www.sedar.com.

REALM ENERGY INTERNATIONAL CORPORATION

Craig Steinke, Executive Chairman & CEO

Forward-Looking Statements: This document contains certain forward-looking statements concerning Realm Energy, as well as other expectations, plans, goals, objectives, information or statements about future events, conditions, results of operations or performance that may constitute "forward-looking statements" or "forward-looking information" under applicable securities legislation. Such statements or information involve substantial known and unknown risks and uncertainties, certain of which are beyond Realm Energy's control, including general business, economic, competitive, political and social uncertainties; the delay or failure to receive regulatory approvals, including rights to lands under application, the characteristics and viability for gas development on lands that have yet to be fully explored and assessed, the willingness of third parties to conclude agreements with Realm Energy on terms that are acceptable to management of Realm Energy, and the ability of Realm Energy to secure sufficient future funding to carry out all of its business plans.

Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, commodity prices, operating conditions, capital and other expenditures, and project development activities.

Although Realm Energy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Realm Energy can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Realm Energy and described in the forward-looking statements or information.

The forward-looking statements or information contained in this news release are made as of the date hereof and Realm Energy undertakes no obligation 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 or the TSX Venture Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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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