Stealth Ventures Ltd. Initiates Review Of Strategic Alternatives and Furthers Its International Transformation
01 November 2010 - 5:51PM
PR Newswire (Canada)
CALGARY, Nov. 1 /CNW/ -- SLV tsxventure CALGARY, Nov. 1 /CNW/ -
Stealth Ventures Ltd. ("Stealth" or the "Company") [TSX.V: SLV]
announces that its Board of Directors has initiated a process to
identify, examine and consider a range of strategic alternatives
available for enhancing shareholder value and has engaged Sayer
Energy Advisors ("Sayer") as its advisor to assist in the review
process. The Company's Board of Directors continues to aggressively
execute on its primary strategy of growing its presence in the
international oil and gas sector and as such the Board determined
that it was an appropriate time to assess strategic options to
enable the Company to complete its transformation into the
international arena. In early January 2010 Stealth announced that
it would be diversifying its business strategy. After closing a 2.5
million dollar private placement, along with changes at the Board
level, Stealth began to move the focus of the Company into the
international arena with an immediate focus on India. The Company's
mandate is to leverage the Company's core competency by analyzing
and developing high impact unconventional oil and gas resource
plays primarily in India as well as south Asia. In June 2010 the
Company entered into a Joint Study Agreement with the Oil and
Natural Gas Corporation Ltd. India (ONGC) to evaluate emerging
Unconventional Resource plays and opportunities in India. The
Company is now completing its transformation, and diversification
out of the North American marketplace which was, in the Board's
opinion, the next logical step. The Company is drawing on its
extensive unconventional resource-play experience, expertise and
technology utilization, to favorably position itself in the early
lifecycle of such resource development with the ultimate objective
of adding shareholder value and growth. The announcement of the
"Strategic Alternatives Process" will explore potential asset
divestments, joint ventures, business combination, evaluation of
additional financing and recapitalization opportunities or other
alternatives to increase shareholder value and expedite the
international transformation. Mr. Rudy Cech, will serve as chair of
the special committee of the Company's Board of Directors
established for this purpose. The special committee has a mandate
to solicit, review and consider strategic alternatives with a view
to an ultimate recommendation as to whether any proposed
transaction is in the best interests of the Company and its
security holders. Corporate Asset The Company's main domestic
holding is in close proximity to the town of Vermilion Alberta
where Stealth has assembled 143 sections of land. This year's
production profile has been approximately 300BOE/D with current
production hovering around 275BOE/D (not including wells that
Stealth has shut in due to low gas pricing). All of the production
is a sweet, dry gas product coming from a shallow shale formation
called the Colorado Group of Shales (Colorado Group). In late 2009
Stealth initiated downspacing and co-mingling applications into the
Alberta Energy Resources Conservation Board ("ERCB" or the "Board")
to proceed with eight wells per section. Upon receipt of subsequent
approval Stealth has the ability to co-mingle multiple horizons out
of the Colorado Group. By early 2010 Stealth received approval for
area-wide co-mingling on all Company lands and received downspacing
approval for 29 sections which are available for 8 wells per
section drainage. Concurrent to this Stealth engaged Fekete
Associates Inc. ("Fekete") to complete rate transient analysis on
its longer producing properties. This work showed well density will
approach 18 wells per section (36 acre spacing) to ultimately drain
the resource before interference is found. With full spacing
approval, Stealth will have hundreds of locations available to the
Company for development. Stealth Ventures Ltd. is a Calgary
based junior oil and gas exploration and Development Company
focused on the exploration for, acquisition, development and
production of unconventional hydrocarbon reserves, derived
primarily from shale, Coalbed Methane (CBM) and tight sand
reservoirs. Confidential Information is available immediately to
qualified interested parties upon signing of a Confidentiality
Agreement and an overview of Stealth Ventures Ltd and a
Confidentiality Agreement are posted on the Sayer website at:
http://www.sayeradvisors.com. STEALTH VENTURES LTD. "Derek Krivak"
Per: DEREK KRIVAK Chief Executive Officer Forward Looking
Statements: This News Release may contain forward-looking
statements based on assumptions and judgments of management
regarding future events or results that may prove to be inaccurate
as a result of exploration and other risk factors beyond its
control, and actual results may differ materially from the expected
results. Disclosure provided herein in respect of BOEs may be
misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. NEITHER THE 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 NEWS RELEASE.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL
FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED.
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table border="0" valign="top"tr valign="top"td align="left"Derek
Krivak, President and CEObr/ Stealth Ventures Ltd.br/ Tel:
403-514-9998 Ext. 223br/ Fax: 403-514-9995br/ a cr="true"
href="mailto:investorrelations@stealthventures.ca"investorrelations@stealthventures.ca/a/td
td align="left" /td td align="left" /td td
align="left" /td td align="left" /td td
align="left"Crystal Holdershawbr/ Sayer Energy Advisorsbr/ Tel.:
403-266-6133br/ Fax: 403-266-4467br/ Emails: a cr="true"
href="mailto:choldershaw@sayeradvisors.com"choldershaw@sayeradvisors.com/a/td/tr/table
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