VANCOUVER, Nov. 29, 2017 /CNW/ - Eros Resources
Corp. (TSX.V: ERC) ("Eros" or the
"Company") is pleased to report its financial and operating
results for the third quarter of 2017. The full third quarter
Financial Statements and Management Discussion and Analysis are
available at www.sedar.com and at the Company's website at
www.erosresourcescorp.com.
In the quarter ended September 30,
2017, Eros announced the commencement of oil production from
its Flaxcombe project. Total
oil production during the third quarter was 5,900 barrels (5,310 to
Eros). As a result, Eros is now a revenue-generating company,
recording a gross profit of $76,373
on revenue of $179,926. The company
recorded net income for the quarter of $90,929 or $0.00
per share and total comprehensive income for the quarter of
$1,093,699 or $0.02 per share, including an unrealized gain of
$981,643 on marketable
securities. At quarter end, Eros had $4,030,544 in cash and cash equivalents and
working capital of $4,268,191. In
addition, the Company held $7,512,805
in marketable securities.
On September 20, 2017, the Company
announced that wellbore 9-13 had achieved a 30-day initial
production average of 80 barrels of oil per day (72 barrels to
Eros). Two additional wells, 1-13 and 6-13 were successfully
completed and brought on production during the quarter. As at
November 26, 2017 the combined 30-day
average production rate of the three Section 13 wells was 120
barrels per day (110 barrels to Eros). Eros holds a 90% beneficial
working interest in the three Section 13 wells until it recovers
its initial capital investment totalling $1.6 million and will hold a 50% working interest
thereafter. Project partner and operator Westcore Energy Ltd
("Westcore" or "WTR") holds title to the Section and
to the remaining interest in the wells.
Well 9-13, the first brought to production, continues to produce
at a steady rate. As at November 26,
2017 its 30-day rolling average production rate had
increased to over 100 barrels per day. Well 6-13 recorded an
IP-30 test average of 16.7 barrels per day but its 30-day rolling
average production rate has since fallen to less than 10 barrels
per day. Production from Well 1-13 has been intermittent, due
to high levels of sand production. Over the six-week period
from September 26th to
November 8th, Well 1-13
recorded only 13 days of oil production, however, steady oil
production has now resumed at an average rate less than 10 barrels
per day. Eros, together with Westcore, continue to work on
ways to optimize production from the field.
On October 5, 2017, Eros announced
the acquisition of a 33.33% direct working interest in three
sections which are contiguous with Westcore's existing land
position, pursuant to a Joint Operating Agreement with WTR and
Saturn Oil + Gas Inc ("Saturn" or "SMI").
This provides Eros with a direct interest in the future
exploration results, reserve assessment and possible future
development within the Flaxcombe
district.
"We are very pleased to have transitioned to an oil producing
company with the successful completion of the first phase of our
investment into the Flaxcombe
heavy oil field. With our existing right of first refusal to
fund up to six additional wells in the field together with our
recent acquisition of a one-third interest in three sections and
further exploration efforts, we believe we are well positioned to
increase our production volume in the coming months," stated
Ron Stewart, President and CEO of
Eros.
About Eros
Eros Resources Corp. is a Canadian public company focused on the
exploration and development of resource projects in North America. Eros has as its prime business
objective the identification, acquisition and exploration of
advanced resource projects with a North American focus. A secondary
focus of the Company is to make strategic investments with a global
focus and a diverse commodity base. The Company's expertise in the
resource sector supports the selection of these strategic
investments.
On behalf of the Board of Directors of
Eros Resources Corp.,
Ron Stewart
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may
constitute "forward looking information" and "forward looking
statements" within the meaning of applicable Canadian and
United States securities
legislation, including, among other things, this press release
includes references to mineral resources and future potential
forecast economics of extracting those resources. There is no
certainty that any portion of the resources will be confirmed with
greater certainty. If confirmed, there is no certainty that it will
be commercially viable to extract any portion of the resource.
There is no certainty that access to the resource area will be
re-established, and if access to the resource area is blocked for
an extended period of time, or permanently, there is no certainty
that any compensation will be received by the Company.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
forward-looking information, including the re-establishment of
physical access to the property, the availability of adequate and
secure sources of funding to construct the extraction facilities
required to extract the mineral resources, prevailing commodity
prices, the receipt of regulatory approvals, environmental risks
and the performance of personnel. While the Company considers its
assumptions to be reasonable as of the date hereof, forward-looking
statements and information are not guarantees of future performance
and readers should not place undue importance on such statements as
actual events and results may differ materially from those
described herein. The Company does not undertake to update any
forward-looking statements or information except as may be required
by applicable securities laws.
Oil and Gas Advisory
Production rates disclosed herein are preliminary and are not
determinative of the rates at which the wells will continue to
produce and decline thereafter and may not necessarily be
indicative of the long-term performance or estimated ultimate
recovery.
Neither TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Eros Resources Corp.