Twoco Petroleums Ltd.

Twoco Petroleums Ltd.

October 16, 2009 18:22 ET

Twoco Petroleums Ltd. Announces Signing of New Farm-in Agreement With Poplar Creek Resources Inc.

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2009) - Further to its news releases dated June 26, 2009 and July 16, 2009, Twoco Petroleums Ltd. ("Twoco") (TSX VENTURE:TWO) is pleased to announce that it has entered into a new farm-in agreement (the "Farm-in Agreement") with Poplar Creek Resources Inc. ("Poplar Creek") whereby, subject to certain conditions, including Poplar Creek raising $3,025,000 by no later than December 15, 2009, Poplar Creek will farm-in on Twoco's lands and acquire an additional interest in all of Twoco's assets. The Farm-in Agreement supersedes the original arm's length definitive agreement entered into between Twoco and Poplar Creek and announced by Twoco on June 26, 2009.

Pursuant to the terms of the Farm-in Agreement, Poplar Creek will have until December 15, 2009 to raise $3,025,000 in order to fund the drilling of the first series of wells. Upon the drilling of such wells, Poplar Creek will earn an interest in the lands drilled pursuant to the Farm-in Agreement and will also acquire an additional 5.5% interest in all of Twoco's assets. Subsequent to the drilling of the first series of wells, Poplar Creek has two successive options to further farm-in on Twoco's lands and thereby earn a further interest in the lands drilled and an additional 5.5% interest in Twoco's assets. Each such successive option requires Poplar Creek to commit to an additional expenditure of $3,025,000 to fund the additional drilling on Twoco's lands. If Poplar Creek fully exercises its options to farm-in on the Twoco lands, Poplar Creek will own a 20% interest in all of Twoco's assets, being the 3.5% interest purchased on July 16, 2009 and the additional 16.5% interest acquired by way of the Farm-in Agreement. If Poplar Creek raises the initial $3,025,000, the drilling program will be commenced as soon as possible after December 15, 2009.

Forward-looking statements:

Certain information set forth in this news release contains forward-looking statements and information ("forward-looking statements"). More particularly, this news release contains statements concerning drilling plans and the purchase and sale of additional interests in Twoco's assets. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twoco's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Twoco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so what benefits Twoco will derive therefrom. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Twoco does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

Neither 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

  • Twoco Petroleums Ltd.
    Wayne A. Malinowski
    President and Chief Executive Officer
    (403) 231-8653
    (403) 237-6048 (FAX)