Georox Resources Inc. - Coteau Lake, Saskatchewan Update - Drilling
Of Second Well Commences - New Credit Facility with Chartered Bank
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
KELOWNA, BC,
Nov. 27, 2012 /CNW/ - Georox
Resources Inc. ("Georox" or the "Corporation")
(GXR:TSX-V; OF6A:FRA) is pleased to announce that a second
horizontal well on its Coteau Lake, southeastern Saskatchewan prospect has spudded on
November 23rd. Georox will pay 42.5%
of the costs to earn 31.875% Working interest BPO and a
21.25% working interest APO. The contract depth for this well is
approximately 1,975 m and the estimated cost to Georox to drill,
complete and test is approximately $839,000.
Drilling this well follows the completion of the
review of the original 3D seismic after analyzing the results of
the first horizontal well 8-10 on this prospect. Five
additional well locations have been identified on a preliminary
basis. The next well is anticipated to be drilled before
March 31st, 2013. Georox
has 3,040 gross (682 net) acres of oil and gas mineral rights in
the light-medium Mississippian oil Coteau Lake prospect.
Burkhard, Franz, Georox President, expressed
satisfaction that the development of the Coteau Lake project will
expand. Mr. Franz stated "We believe this is a great opportunity to
drill and participate in a highly prospective, light/medium oil
exploration play and develop a new core area for the
Corporation".
On July
16th, 2012 Georox announced that the initial 8-10
Coteau Lake well (31.875% BPO, 21.25% APO) was completed and swab
tested at an average rate of approximately 435 bopd of light oil
and 30 bpd of water over a 7.5 hour period. The well has been
equipped and formally tested and production rates have been limited
to approximately 60 bopd due to high water cut of 60%. The
Production is expected to remain at this level until the water
disposal application is approved by the Energy Resources
Conservation Board. After the water disposal well is activated it
is planned to implement high volume lift production on the 8-10
well.
The Corporation has entered into an agreement
for a credit facility with a Canadian chartered bank, secured
against the Corporation's assets. The credit agreement provides for
a $1.0 million dollar demand
operating facility and a $500,000
demand acquisition facility, subject to the bank's prior review of
the proposed acquisition prior to use. Georox currently
expects to make use of its bank facility for further development of
its existing properties.
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.
The swab test rate expressed above is for a
7.5 hour period, extrapolated to a 24 hour period for the relevant
well. Any references in this press release to
production/performance rates are useful in confirming the presence
of hydrocarbons, however, such rates are not determinative of the
rates at which such well will continue production and its decline
thereafter or ultimate recoverable resources. While
encouraging, readers are cautioned not to place reliance on such
rate in calculating the production for the well or
Corporation.
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 "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
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.
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.
SOURCE Georox Resources Inc.