Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

May 22, 2012 11:08 ET

Red Rock Energy Inc. Executes Joint Venture Letter of Intent

CALGARY, ALBERTA--(Marketwire - May 22, 2012) - RED ROCK ENERGY Inc. (TSX VENTURE:RRK) ("Red Rock" or "the Corporation") announced today that it has executed a Letter of Intent with a privately held Alberta corporation ("Privco"), pursuant to which the parties shall form a joint venture for the purpose of completing up to six wells as identified by Red Rock and located in north eastern British Columbia. The completion of this joint venture remains subject to the negotiation and execution of a definitive agreement between the parties, receipt of approval from Privco's financial backers, completion of due diligence procedures by Privco, and the obtaining of any required corporate and regulatory approvals by Red Rock.

It is the intention of the parties that Red Rock will remain operator of any projects initiated, and payment terms will include reimbursing Red Rock for expenses associated with prospect development, prospect acquisitions and provision of technical services. Relative to each of the prospects, Privco shall pay 100% of all equipping and tie-in costs to earn an 80% interest in that prospect.

In commenting on the transaction, Sandy Loutitt, President of Red Rock, stated: "In a very tight financial market, it has been a very positive development to establish the basis of a joint venture with this company. Operated by experienced oil and gas executives, and funded by a strong partner, this joint venture offers Red Rock an excellent opportunity to move ahead with the development of a number of prospects which have been shown to offer significant potential. We look forward to moving to the next stage of this exciting partnership."

General Disclaimer

Red Rock and its management have taken all reasonable care in producing and publishing information contained in this news release, and will endeavor to do so on a periodic basis. Material in this news release may still contain technical or other inaccuracies, omissions, or typographical errors, for which Saccharum assumes no responsibility. Nor does Red Rock warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this site. Under no circumstances, including, but not limited to, negligence, shall Red Rock be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material from this news release. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal use unless you have obtained our express written permission.

Forward-Looking Statements

This news release may contain forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

For further information regarding Red Rock Energy Inc., please refer to the Company's filings available on SEDAR (Http://www.sedar.com).

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

  • Red Rock Energy Inc.
    Sandy Loutitt
    President
    (403) 685-9892