CALGARY, ALBERTA--(Marketwired - Oct. 7, 2013) - Amarok Energy Inc. ("Amarok" or the "Corporation") (News - Market indicators) is pleased to announce that its wholly owned subsidiary Trilateral Energy USA Inc. has completed the acquisition of a 50% working interest in an oil and gas property located in central Wyoming, USA. The effective date of the acquisition is September 1, 2013.
The purchase price was cash consideration of $1,850,000 (USD) before closing adjustments.
The assets include a 50% working interest in 8 gross producing oil wells and approximately 5,257 net acres of land. The current production rate of the property is approximately 70 gross barrels of oil per day (35 net). The majority of the property reserves are within the undeveloped categories and it is anticipated that it will require significant future development capital in order to move them into producing reserve categories.
The producing properties are part of the Bighorn Basin, an area which has been under production for more than 50 years. Many of the medium grade oil pools are produced from reservoir sandstones and carbonates that occur within the heavily structured basin-edge fold belt which is particularly suited to the exploration and exploitation skills within Amarok.
"The acquisition of the oil and gas assets in Wyoming will provide Amarok with additional monthly cash flow as well a development land base to exploit using Amarok's technical expertise" stated Dale Swanson, President and CEO of Amarok.
Operational Update
Amarok has recently been advised by the operator of the South Sunshine property in Wyoming, USA that it has secured surface access rights and as a result Amarok is currently working with the operator of the property to organize the drilling of a well on the property. The area is prone to heavy winter snow cover and therefore winter drilling will be logistically difficult or even disallowed by state regulators. The well is anticipated to spud in late Q1 2014 or early Q2 2014.
Amarok is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas in highly structured play fairways of the Americas.
Cautionary Statement on Forward-Looking Statements and Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will, "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, forward-looking statements and information in this press release include, but are not limited to: the requirement of significant future development capital in order to move reserves into producing reserve categories; that the acquisition will provide Amarok with additional monthly cash flow as well a development land base to exploit using Amarok's technical expertise; and the timing of drilling a well on the South Sunshine property. The forward-looking statements and information contained in this press release are based on certain key expectations and assumptions made by Amarok. Although Amarok believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because there can be no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: operational risks in development, exploration and production of oil and gas; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Readers are cautioned that the forgoing list of factors is not exhaustive.
Management has included the above summary of assumptions and risks related to the forward-looking statements and information provided in this press release in order to provide a more complete perspective on the ongoing operations of Amarok and such information may not be appropriate for other purposes. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements and information contained in this press release will transpire or occur, or if any of them do so, what benefits may be derived therefrom.
The forward-looking statements and information contained in this press release are made as of the date hereof and Amarok undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.
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.
