Georox Signs Farmout Agreement
Pursuant to the Agreement once Georox completes its obligations by the payment of $220,000, the Farmor shall assign to Georox its earned interest in the Farmout Lands subject to any Crown royalties.
The overall plan is to re-enter, re-complete/workover, equip and produce via high volume lift, up to 5 potential Sparky heavy oil wells. Success will eventually lead to infill drilling on a reduced well spacing, which will be determined by recovery per well, followed by the implementation of a water flood. The potential is a gross incremental recovery of 800 M Bbls of oil ( Georox's 25% share would be 200 M Bbls of Oil) on the subject lands.
Georox's contribution will be used as part of a $440,000 initial work program committed to by the joint venture partners, which includes the re-entering of 2 wells in Phase1 of the program. Upon successful re-completion and equipping, the well's production will be analyzed and evaluated for 2 months. Phase 2 will include the re-entering of 3 more wells in a similar manner as Phase 1 except one of the wells will be completed as a pressure maintenance water injection well, subject to the approval of a waterflood application by the Energy Resources Conservation Board.
This acquisition is an important move in the growth of the company to participate in a low-risk/high-growth potential development opportunity.
For more information, please contact:
Burkhard Franz
President/CEO
Georox Resources
Phone: (250) 712-2213
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Georox Resources Inc. Closes Private Placement Of 2,500,000 Units.
Each Unit is comprised of one common share of the Corporation and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to purchase one additional common share of the Corporation at a price of $0.25 per common share at any time prior to 4:30 p.m. (Calgary time) on May 28, 2012. All securities issued under the Private Placement are subject to a hold period of four months following the date of closing, in accordance with applicable securities laws. Participation in the Private Placement by directors and officers are: Calypso Capital Corp (Burkhard Franz) 1,500,000 units, Tradewinds Capital Corp (Savi Franz) 500,000 units and hidden placees is two. Pro Group --Murray McInnes. An agent's commission of $5,400 will be paid to Hayward Securities.
As a result to the participation by officers in the financing, Multilateral Instrument 61-101 requires Georox to obtain minority approval and a formal valuation for the financing unless an exemption from the minority approval and valuation requirements is available. Such an exemption is available to Georox as at the time the transaction was agreed to neither the fair market value of the subject matter of, nor the fair market value consideration for the transaction, insofar as it involves interested parties, exceeds 25% of Georox's market capitalization.
The proceeds of the Private Placement will be utilized for working capital purposes.
After giving effect to this Private Placement, the Corporation will have 15,881,185 outstanding common shares. An additional 1.25 million common shares will be reserved for issuance on exercise of the common share purchase warrants issued pursuant to the Private Placement.
The TSX Venture Exchange has accepted the documents filed by the Corporation.
About Georox
The Company trades its common shares on the TSX Venture Exchange under the symbol GXR and its common shares on the Frankfurt Stock Exchange under the symbol OF6A.
For further information you can visit the Corporation's website at: www.georoxresources.com or view the Corporation's records on SEDAR at: www.sedar.com
Cautionary Statement:
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. This news release includes certain "forward looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation with securities regulations.
For further information:
Burkhard Franz
Georox Resources Inc.
212-1708 Dolphin Avenue
Kelowna, British Columbia
Canada V1Y 9S4
Tel: (250) 712-2213
Fax: (250) 712-2215
Press Release
The proceeds of the Placement will be used for general working capital. Agents may be paid a finder's fee of up to 10 per cent of the aggregate subscription amounts secured by such agents pursuant to the private placement. The units to be issued under the private placement will be issued pursuant to exemptions from the prospectus requirements of applicable securities legislation and will be subject to resale restrictions as required under the applicable securities legislation.
After giving effect to this Private Placement, the Corporation will have 15,881,185 outstanding common shares. An additional 1,250,000 shares will be reserved for issuance on exercise of the common shares purchase warrants issued pursuant to the Private Placement.
For more information, please contact:
Burkhard Franz
President/CEO
Georox Resources
Phone: (250) 712-2213
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Georox Acquires Additional Alberta Producing Lands
The Assets include a 4.2% working interest in 2 ¾ sections of land and 3 Nisku producing light oil wells in the Hays Arcs T, Y Pool as well as a 30% working interest in one other Nisku light oil well in the area. The wells are currently producing 120 barrels/day of light oil and 40 Mcf/d of solution natural gas (10.8 boepd net to the Company). The Assets are operated by industry third parties . The company believes there is potential to drill up to three additional development wells on the acquired lands plus additional potential in other formations within the current well bores.
The Company also announces a delay in the drilling of wells in the Farmout Lands ( as per the company's news release dated /September 28, 2009) located in the Province of Saskatchewan by its joint venture partners. The reason for the delay is due to ongoing negotiations for the pooling of lands with an adjacent producer to form a larger area of common interest by the joint venture partners. Shareholders will be informed of the spudding date accordingly.
For more information, please contact:
Burkhard Franz
President/CEO
Georox Resources
Phone: (250) 712-2213
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Georox Resources Inc. Announces the Release of Consolidated Financial Statements for the Year Ended December 31, 2009.
Overview
Georox is a company engaged in the acquisition of, exploration for and the development of petroleum and natural gas properties. Over the course of 2009, as a result of change in Ecuadorian natural resources law, the Company let lapse or disposed of all Ecuadorian assets held by the Company's wholly owned subsidiaries. The 215 contiguous units of claims that the company staked in April, 2008 in the West Kootenay region of southeastern British Columbia was not renewed in February, 2009. During this period, the Company also acquired interests in a property in Gift Lake, Alberta which has five producing oil wells and a gross overriding royalty on the sixth well. The Company intends to continue to pursue economically attractive petroleum and natural gas properties in and around Alberta, Saskatchewan and British Columbia.
Highlights
- The Company has reduced net operating losses in 2009 by $148,299 as compared to 2008 a total loss of $440,879 due to the acquisition of income producing properties, reduction in general and administrative expenditures, the sale of part of its investment in Canuc Resources Corporation and revenues received from the income producing property purchased. This loss excludes the loss from discontinued operations of its Ecuadorian Assets.
- Georox's production from the Gift Lake property for the 6 months ending on December 31, 2009 amounted to $631,189. The Company's total production from the Gift Lake property was 8,902 bbls of oil with a daily average volume of 56 BOE per day.
- Georox realized a gain of $112,784 on the sale of an investment in the common shares of Canuc Resources Corporation. The fair market value as at December 31, 2009 of the remaining investment in common shares of Canuc Resources Corporation is $174,248.
- The Company recorded a total loss of $495,036 for the year ended December 31, 2009. The loss arose primarily as a result of the write down of all of the Ecuadorian assets, other mineral properties and the severance payment to a former employee.
- Total operating costs were $131,761 or $14.08 per BOE. This is attributable to a combination of fixed costs being spread over volumes of production, workover requirements on one well and a high percentage of processing fees by the operator on three wells.
| Year Ended | December 31,2009 | December 31,2008 |
| Petroleum and natural gas revenue | $ 631,189 | Nil |
| Net loss | $ (495,036) | $ (1,161,465) |
| Net loss per share,basic and diluted | $ (0.04) | $ (0.11) |
| Total assets | $ 2,137,190 | $ 2,216,508 |
| Total current liabilities | $ (200,480) | $ (79,870) |
| Deferred Exploration fees | Nil | $ 123,380 |
Outlook
- The Company has sufficient working capital to meet all of its foreseeable obligations based on its business plan for the next twelve months. The Company may be required to raise additional debt or equity financing in the future in order to fund additional capital expenditures on existing projects or to acquire additional assets.
- Georox signed a farm-in agreement on September 25, 2009 with a Company for total expenses of $600,000. The farm-in agreement will enable the Company to earn a 15 percent working interest on the farm-in lands consisting of 1,040 acres in Saskatchewan. In addition, the Company has agreed to pay $50,000 for the right to participate in this project of which $25,000 was paid on signing of the agreement and $25,000 is to be paid upon the spudding of the first well. The spud date is expected to be near the end of April 2010.
For more information, please contact:
Burkhard Franz
President/CEO
Georox Resources Inc.
Phone: (250) 712-2213
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. This news release includes certain "forward looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed from time to time in the filings made by the Company with securities regulations.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information.
Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Georox does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.