Stetson Oil & Gas Ltd.
TSX VENTURE : SSN

Stetson Oil & Gas Ltd.

October 14, 2014 08:00 ET

Stetson Receives Notice Related to Colombia Oil and Gas Exploration Block

TORONTO, ONTARIO--(Marketwired - Oct. 14, 2014) - Stetson Oil & Gas Ltd. (TSX VENTURE:SSN) reports that the company has received a notice from the regulatory authority for the Llanos-11 oil and gas exploration block located in Colombia (the "Llanos Block"). The Llanos Block is a non-core asset and was acquired by Stetson during the Ronda 2010 bidding process organized by the Agencia Nacional de Hidrocarburos of Colombia. Stetson subsequently successfully farmed out 90% of the Llanos Block to an independent company in exchange for retaining a 10% carried interest during the exploration phase. However, due to the failure of the partner to meet the required obligations, Stetson terminated the farm-out agreement in October 2013. The Llanos Block is now in breach of its original contract terms as a result of the failure by the partner to fulfill the work program obligations. Pursuant to the notice, Stetson has a brief period to remedy the default or the regulator may take steps to withdraw Stetson's interest in the Llanos Block. Stetson intends to work with the regulator in an attempt to reach an amicable resolution.

Regulatory Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the notice of breach of obligations from the ANH and efforts made by Stetson to resolve the breach. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Stetson, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate acquired properties; foreign operations risks; and other risks inherent in the oil and gas industry. Although Stetson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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