Veteran Resources Inc.

Veteran Resources Inc.

June 27, 2005 17:04 ET

Veteran Announces Sale of Ontario Properties

CALGARY, ALBERTA--(CCNMatthews - June 27, 2005) - Veteran Resources Inc. (TSX:VTI) is pleased to announce that, consistent with its strategy to focus operations in the Peace River Arch, the Company has entered into an agreement with a private company to sell all of its Ontario properties for $4.3 million, prior to standard closing adjustments. The purchaser has paid a $250,000 non-refundable deposit with the balance due at closing. The sale is expected to close in July, 2005 with an effective date of June 1, 2005. Veteran's current production from these properties is approximately 70 barrels of oil equivalent (boe) per day, including 10 boe per day of gross overriding royalty production. The Company will continue the process of rationalizing minor non-core properties as production increases in its Peace River Arch focus area.

Caution to Reader

This news release contains forward-looking statements and the reader is cautioned not to place undue reliance on these statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. These statements are based on current expectations that involve risks and uncertainties including but not limited to: the uncertainty that the sale of the Ontario properties may not be completed as contemplated or at all, even though an agreement is signed.

Boe's are derived by converting natural gas to oil in the ratio of 6 mcf to 1 bbl. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent an equivalency at the wellhead.

Contact Information

  • Veteran Resources Inc.
    Philip J. Loudon
    President and Chief Executive Officer
    (403) 699-8629
    Veteran Resources Inc.
    J. Peter Henry
    Vice President and Chief Financial Officer
    (403) 699-8632