SASKATOON, SASKATCHEWAN–(Marketwired – Feb. 6, 2017) – Westcore Energy Ltd. (“Westcore” or the “Company”) (TSX VENTURE:WTR) is pleased to announce that it has entered into a farm-in agreement (the “Agreement”) with Eros Resources Corp. (“Eros”) to complete a 3 vertical well program on Westcore’s Flaxcombe oil field. Under the terms of the Agreement, Eros will fund 100% of the cost to drill, complete and bring the wells on production in exchange for a 90% interest in the wells before payout, and a 50% interest after payout. Eros shall also retain a right of first refusal on two subsequent drill programs under the same terms.
The Flaxcombe field is located 30 kilometres west of Kindersley, Saskatchewan. With four wells producing, the field is generating approximately 85 barrels of oil per day and there remain additional standing well-bores and shut-in production that can be re-initiated at any time. The field has been optimized with the use of WTR’s 100% owned water disposal facility, oil and water haulage capability and the use of casing gas to power the wells and to heat storage tanks.
The 3 well program is designed to drill offset locations to Westcore’s existing production wells at Flaxcombe. It is anticipated that the drill program will commence in mid February, with the intent of having all three wells on production before break-up.
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 3 well drilling program that is referenced herein, shut-in production potentially being re-initiated and the earning of interests by Eros in Westcore’s Flaxcombe field. 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.
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Vice President and Chief Operating Officer