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."
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Contact Information:
Sandy Loutitt
President
(403) 685-9892