Westcore Energy Ltd.
TSX VENTURE : WTR

Westcore Energy Ltd.

April 20, 2015 18:54 ET

Westcore Announces Working Interest Allocation on Riverside Oil & Gas Property

SASKATOON, SASKATCHEWAN--(Marketwired - April 20, 2015) - WESTCORE ENERGY LTD. ("Westcore" or the "Company") (TSX VENTURE:WTR) is pleased to announce that it has formalized its working interest in the Riverside heavy oil field of Allstar Energy Limited ("Allstar"), located 16 km north of the town of Leader in Western Saskatchewan. In accordance with the Farm-in Agreement entered into between Westcore and Allstar in fiscal 2012, as amended in June 2014 (collectively, the "Agreement"), Westcore now has a formalized 5.50% interest in 6 wells at Riverside (see Westcore's news releases dated July 25, 2012 and June 12, 2014 for more details and information on the Agreement). To date, 3 of these 6 wells have been completed and equipped for production.

The Company earned this interest by completing a 20 square km 3D seismic program in 2012. In fiscal 2014, the Company exercised its right of first refusal, as was provided for in the Agreement, and funded a $300,000 of a secondary drilling program which resulted in a 22% working interest in a salt-water disposal well at Riverside.

The interest percentages are calculated as a function of capital provided as a percentage of total capital used in drilling the six production wells and the disposal well. The allocation of working interest was made effective as of December 31, 2014.

It is anticipated that the addition of the water disposal facility will enhance the economics of producing wells, along with the potential to generate a secondary revenue stream from the disposal of third party water. It remains the intention of the Company to continue with its investments in oil and gas, with a focus on the Riverside field.

All production in the Riverside field is currently shut-in for spring breakup. The decision to re-initiate production post break-up will rely to a large extent on the current market price for heavy oil at the time.

Allstar is a wholly-owned subsidiary of 49 North Resources Inc. ("49 North"). As 49 North is also an Insider of Westcore by virtue of its shareholdings (roughly 23% of outstanding Westcore shares), Allstar and Westcore are considered to be "Non-Arm's Length Parties" under the rules and policies of the TSX Venture Exchange.

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Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, the potential impact of the water disposal well on the economics of producing wells and the Company's intention to focus on Riverside. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, governmental regulation, including environmental regulation; commodity prices; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the 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

  • Westcore Energy Ltd.
    Andrew Davidson
    Vice President and Chief Operating Officer
    (306) 653-2692
    www.westcoreenergy.ca