|By Marketwired .||
|July 9, 2014 06:00 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 07/09/14 -- PanTerra Resource Corp. ("PanTerra" or the "Corporation") (TSX VENTURE: PRC) is pleased to announce that it has entered into a purchase and sale agreement with an arm's length industry participant (the "Purchase and Sale Agreement") to acquire (the "Acquisition") certain natural gas assets located in the Western Canadian foothills areas of Copton and Narraway, Alberta (the "Assets"), effective as of June 1, 2014, for a purchase price of $2.4 million, payable in cash, subject to adjustments. The Acquisition is subject to standard industry closing conditions. The purchase price for the Acquisition will be funded by existing corporate funds and is expected to close on or about August 6, 2014.
The Assets consist of 5,638 net acres of developed land, 3,070 net acres of undeveloped land and related producing infrastructure in the foothills region of Alberta and British Columbia. The Assets include a 40% working interest in a gas plant at Copton which has strategic significance for future development plans by Panterra within its much larger asset acquisition previously announced on June 12, 2014. The Assets are currently producing approximately 120 BOE per day (100% natural gas). PanTerra has identified several potential unrisked and unbooked locations included with the Assets, based on bypass pay and regional structural understanding of the stacked reservoirs
PanTerra is a junior public oil and gas company listed on the TSX Venture Exchange under the symbol "PRC", with conventional and unconventional assets in Western Canada. The technical team has worked together for over a decade in the Foothills Region of Western Canada, through two successful, publicly traded companies. The unique skills and repeat success at exploiting a complex, potentially prolific play type are fundamental ingredients for a successful growth-oriented company in Western Canada. Corporation information can be found at: www.panterraresource.com.
NEITHER 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 RELEASE.
Caution Respecting BOE
In this press release, the abbreviation BOE means a barrel of oil equivalent derived by converting gas to oil in the ratio of 6 Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 bbl, utilizing a conversation ratio on a 6 Mcf of gas to 1 bbl of oil basis may be misleading as an indication of value.
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains certain statements or disclosures relating to PanTerra, the Acquisition and the Assets that are based on the expectations of PanTerra as well as assumptions made by and information currently available to PanTerra which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that PanTerra anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "will", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", "pro-forma", or other comparable terminology. In particular, this press release makes reference to the expected completion of the Acquisition, the satisfaction of industry standard conditions to the closing of the Acquisition, the strategic significance of the Acquisition for future development plans and the identification of potential unrisked and unbooked locations included among the Assets. Readers are cautioned that there is no assurance that the Acquisition will proceed. Certain conditions must be met before the Acquisition can be completed and there is therefore no assurance that the Acquisition will be completed in the time frame anticipated or at all. Many factors could cause the performance or achievement by PanTerra to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. The Corporation is not under any duty to update any of the forward-looking statements after the date of this press release or to conform such statements to actual results or to changes in the Corporation's expectations and the Corporation disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
PanTerra Resource Corp.
Tim de Freitas
President and CEO
PanTerra Resource Corp.
VP Finance & CFO
PanTerra Resource Corp.
800, 717 - 7th Ave. S.W.
Calgary, AB, T2P 0Z3