Not for Distribution to U.S. News Wire Services or Dissemination in The United States
REGINA, SK / ACCESSWIRE / April 24, 2020 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK) announces that it has entered into a purchase agreement dated April 22, 2020 (the "Purchase Agreement") to acquire certain producing oil and gas assets (the "Assets") in Southeastern Saskatchewan. Closing of the acquisition is expected to occur on June 30, 2020 with an effective date of June 1, 2020, subject to the completion of a diligence review on the assets as well as the receipt of any necessary regulatory approvals. The total purchase price for the assets is $70,000. The Company has paid a deposit of $50,000 in connection with entering into the Purchase Agreement.
The acquisition properties are located within the Glen Ewen area of Southeast Saskatchewan, targeting the Midale and Frobisher formations. Production from these Assets were approximately 85 Bopd (150 Boepd) from 13 wells for the month of March 2020. The acquired Assets also include associated facilities and undeveloped land directly adjacent to the Company's existing land base within the project area. This contiguous area now allows for cost effective development of ROK's previously undeveloped lands utilizing existing processing capacity, water disposal and pipeline infrastructure.
As part of the Purchase Agreement, ROK has also entered into a third party processing agreement with the seller for a portion of the volumes on a fee basis. The acquisition package also contains associated liabilities, including future abandonment obligations and 27 suspended wells and 11 inactive facility sites, which will be evaluated for future reactivation.
About ROK
ROK (previously Petrodorado Energy Ltd.) was previously engaged in petroleum and natural gas exploration and development activities in Colombia and is currently engaged in exploring for petroleum and natural gas development activities in Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK's common shares are traded on the TSX Venture Exchange under the trading symbol "ROK".
For further information, please contact:
Cameron Taylor, President and CEO
Lynn Chapman, VP Finance and CFO
Phone: (306) 698-7999
Email: info@rokresources.ca
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the possible purchase of oil and gas assets from a third party and the timing of the closing of such acquisition and the Company's objectives, goals or future plans with respect to pursuing such transaction. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
View source version on accesswire.com:
https://www.accesswire.com/586815/ROK-Resources-Announces-Asset-Acquisition
