Pacific Rodera Energy announces sale of Trutch assets and Northwest Territories update
CALGARY, March 20 – Pacific Rodera Energy Inc. (TSX Venture: PRD), (“Pacific Rodera” or the “Company”) announced today that it has agreed to sell its 8% working interest in its Trutch property for $2.2 million dollars payable in cash subject to customary price adjustments. The production attributed to Pacific Rodera’s working interest in these properties represents approximately 45 boes of production per day. The sale of such a low working interest is consistent with Pacific Rodera’s objective of only being involved in high working interest, operated properties. Completion of the sale is subject to the approval of the TSX Venture Exchange and consent of the purchaser’s lenders which is expected to be received. As the credit cycle continues to unwind Pacific Rodera believes the real opportunities are beginning to present themselves and the importance of having cash is increasingly apparent. This is consistent with the Company vision that was set out over 12 months ago. Upon closing the sale, Pacific Rodera will have approximately $25.6 million cash on hand, no debt and excellent connections to the capital markets. Pacific Rodera is actively pursuing various domestic and international exploration and development opportunities and has continued to acquire land in Canada as prices continue to fall, with approximately 18,000 gross acres acquired since November 2007. In addition, the Company is continuing to work with several First Nation bands in Saskatchewan to secure interests in approximately 88,000 acres of land located within the Bakken play area of SE Saskatchewan. Entering into this joint venture arrangement is consistent with Pacific Rodera’s strategy to develop large contiguous land positions on high impact plays.
We are also pleased to announce the appointment of John Nesbitt as Vice President, Land. Pacific Rodera has now assembled a complete management team to enable the Company to rigorously evaluate and operate properties as they become available.
Northwest Territories Update
The Keele River L-52 well was drilled to a total depth of 895m. After reviewing the logs, the well was determined to be a dry hole and is being abandoned. In addition, the Dahadinni B-20 has been side tracked and is anticipated to reach a total depth of 2580 meters by the end of the month.
Statements in this press release contain forward-looking information, including expectations relating to future opportunities and achieving certain drilling results. Readers are 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 the Company. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks include, but are not limited to; operational risks in exploration, development, production and transportation, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The risks outlined above should not be construed as exhaustive and readers are urged to read our publicly filed documents for additional risk factors and considerations. The reader is cautioned not to place undue reliance on this forward-looking information. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information: Michael Greenwood, Chairman and Chief Executive Officer; Mark Hornett, President and Chief Operating Officer; David Williams, Senior Vice President, Corporate Development and Investor Relations; Telephone: (403) 234-0501, Facsimile: (403) 234-0511