/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
KELOWNA, BC, Sept. 8, 2017 /CNW/ -
Lender Arrangements
Georox Resources Inc. ("Georox" or the
"Corporation") (TSXV:GXR) announces that it has entered into
an amended credit facility and forbearance agreement with Tallinn
Capital Mezzanine Limited Partnership ("Tallinn" or the "Lender").
Under the terms of the forbearance agreement, Tallinn has agreed to forbear from exercising
enforcement rights and remedies in respect of its credit facilities
with Georox until July 31, 2018, subject to customary
conditions. As a term of the forbearance arrangement, Georox has
provided Tallinn with a quitclaim
of its properties which may be used by Tallinn in the event that Georox defaults
under the credit arrangements, including the forbearance agreement,
provided that if at maturity, the petroleum and natural gas assets
of Georox have a fair market value greater than 90% of the then
outstanding amount owing to Tallinn, the forbearance period and use of the
quitclaim will be extended until January 31, 2019 if Georox
shall go into default under the amended credit facility or
forbearance agreement.
The amended commitment letter with Tallinn provides for a new second credit
facility in the amount of $600,000 to
be used to fund the Red Earth waterflood project.
Red Earth Waterflood
The Corporation has obtained the requisite regulatory approvals
and initiated the waterflood project with the goal of significantly
improving the production and net back economics of its Red Earth
properties. Operations with respect to institution of waterflood
are expected to be completed by late October, 2017 and the full
impact of the benefits of the waterflood are expected to be
realized around Q2, 2018.
About Georox
Georox is a public oil and gas exploration, exploitation and
development company focusing on conventional oil and gas reservoirs
in Western Canada. Georox will use
its experience to develop, acquire and drill assets with potential
for primary and secondary recovery.
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.
The reader is cautioned that assumptions used in the preparation
of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted, a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the
control of Georox. These risks include, but are not limited
to; the risks associated with the oil and gas industry,
availability of capital to carry on operations, commodity prices,
financial market volatility, availability of key personnel and
exchange rate changes. Industry related risks could include,
but are not limited to: operational risks in exploration,
development and production, delays or changes in plans, risks
associated to the uncertainty of reserve estimates, environmental,
health and safety risks and the uncertainty of estimates and
projections of production, costs and expenses. The reader is
cautioned not to place undue reliance on this forward looking
information.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in the United States. The Units (or constituent
securities) have not been and will not be registered under the
United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may
not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Georox Resources Inc.