Westcore Energy Ltd.
TSX VENTURE : WTR

Westcore Energy Ltd.

September 20, 2011 11:00 ET

Westcore Announces Upcoming Drill Program and Quantex Update

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2011) - WESTCORE ENERGY LTD. – (TSX VENTURE:WTR) ("Westcore") is pleased to announce that preparation is underway for its upcoming winter drill program to commence in Q1/2012 on its Hudson Bay, Black Diamond and FNR JV projects located near Hudson Bay, Saskatchewan. Westcore is planning the 2012 winter program based upon the results of its recently completed gradient gravity airborne survey, which covered approximately 3 times the area of the 2010 survey. This is the same type of survey that allowed Westcore to achieve 97% accuracy in drilling gravity anomalies during its winter 2011 drilling program. The 2012 winter program will have two phases. The first phase will be a delineation program to expand previously identified deposits with an aim to incorporate the results into a 43-101 resource calculation. The second phase will be an exploration program to test several new geophysical anomalies identified in both the 2010 and the 2011 airborne surveys.

Paul Conroy, President and CEO of Westcore states "We are extremely excited about the upcoming 2012 winter program, as several new targets have been identified using the same highly successful technique from our 2011 program. We look forward to commencing this winter drilling program, which is scheduled for Q1 2012 in order to maximize cost effectiveness, and to yielding further results that we hope to incorporate into a 43-101 resource report on Westcore's properties."

Westcore is also pleased to provide an update on progress being made between Quantex Research Corporation ("Quantex") and Westcore (together, the "Companies"). Since the Companies signed the Letter of Intent ("LOI") on or about May 31, 2011, Quantex has conducted preliminary assessments of Westcore's coal and its suitability for Quantex's proprietary and revolutionary CTL technology and has confirmed that it is pleased with these assessments to date. Construction is well underway on a new 10,000 square foot Quantex research and testing facility, where it expects to complete larger scale testing and detailed analysis of bulk coal samples. Quantex has further streamlined its process through a number of engineering breakthroughs that it expects will allow it to optimize the processes of converting coal to liquids specific to each particular type of coal, including Westcore's. The Companies have agreed to extend the targeted timing for signing definitive agreements until the streamlining processes can be fully incorporated and the complete analysis of Westcore's bulk coal sample is concluded. Until definitive agreements are signed, the Companies continue to work together under the terms of the LOI, which includes exclusive access in both Saskatchewan and Manitoba. As reported in the Oilpatch Report(i), Quantex has stated that it estimates the breakeven costs of the Quantex process will be less than $50 per barrel of oil, with Quantex's estimate of conversion factors being between 2.8 and 3.6 barrels of oil per dry ton of typical North American sub-bituminous coal, as well as high quality carbon products.

Gordon Eberth from Quantex states, "Based upon preliminary sampling of Westcore's coal, Quantex is very pleased with its suitability for the Quantex process and we continue to look forward to working with the Westcore team and completing the full analysis of Westcore's coal samples."

Reader Advisory

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(i) http://www.oilpatchreport.com/component/content/article/65-technology/101-quantex-targets-coal-to-liquids-at-less-than-50-per-barrel

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Contact Information

  • Westcore Energy Ltd.
    Paul Conroy
    President and Chief Executive Officer
    (403) 237-6122
    www.westcoreenergy.ca