KELOWNA, BC, May 9, 2012 /CNW/ - Georox Resources Inc. ("Georox" or the
"Corporation") (GXR:TSX-V; OF6A:FRA) is pleased to announce that it has
signed a participation agreement with respect to a farm-in agreement on
lands in the Coteau Lake area in southeastern Saskatchewan and
northeast Montana.
The participation in the farm-in includes three and one-quarter sections
of land (2080 gross acres) with the potential of high productivity
light/medium (30 degree API) Mississippian oil. Georox will pay 100% of
the farmee's 85% of the costs to drill, complete and test an "earning"
horizontal exploration well to earn a 31.875% working interest before
payout and 21.25% working interest after payout in the test well
quarter section and one additional quarter section. Subsequent to
Georox earning its initial interest in the farm-in lands, Georox may
participate in option wells to earn a 31.875% before payout and 21.25%
after payout in additional 320 acre blocks for each well drilled by
paying 42.5% of the costs to drill, complete and equip such additional
wells.
The contract depth of the initial earning well is approximately 1,975m
and the estimated cost net to Georox to drill, complete and test is
approximately $1.565 MM. This earning well is to be drilled immediately after spring break up in
mid-May 2012. Three (3) additional earning well locations have been
identified and are expected to be drilled subsequent to the drilling
and testing of the first well.
This farm-in is considered by management to be a major strategic move in
the growth of the Corporation and provides Georox with the opportunity
to drill and participate, in a high-potential, light/medium oil
potential exploration opportunity.
Cautionary Statement:
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority
has approved nor disapproved the information contained herein.
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. Important factors that could
cause actual results to differ materially from the Corporation's
expectations are exploration risks detailed from time to time in the
filings made by the Corporation with securities regulations.
The reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control
of Georox. As a result, we cannot guarantee that any forward-looking
statement will materialize and the reader is cautioned not to place
undue reliance on any forward-looking information. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those anticipated. Forward-looking statements contained
in this news release are expressly qualified by this cautionary
statement. The forward-looking statements contained in this news
release are made as of the date of this news release, and Georox does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required
by Canadian securities law.
