Mr. Harry Chew reports
PACIFIC PARADYM ENERGY INC. NEW RELEASE
Pacific Paradym Energy Inc. has executed a letter of intent (LOI) dated Jan. 25, 2011, with Neo Exploration Inc. to conduct an exploration program over certain lands in Montana. Neo is a private Alberta-based corporation engaged in the exploration and development of oil and gas assets in North America and manages oil and gas assets for third parties through its Neo EAS division.
Under the terms of the LOI, the company has the right to earn its working and net interest in Neo's interests by fulfilling the following terms:
a) To spend $400,000 or such other amount as reasonably required to acquire additional petroleum and natural gas rights in the lands on or before June 30, 2012;
b) To spend not less than an aggregate of $1 million to shoot and/or acquire 2-D and/or 3-D seismic data over the lands; and
c) To drill not less than four exploration wells on the lands on or before June 30, 2012, to a sufficient depth to test and evaluate the Bakken formation.
Upon the company exercising its option as outlined above the company will have earned an undivided 70-per-cent working and net interest in the exploration wells and 70 per cent of Neo's net and working interests in the petroleum and natural gas rights in any and all lands and leases owned or held by Neo in the lands below the top of the Mannville Group to the base of the Bakken formation subject to lessor royalty.
"We are very excited to enter into this exploration agreement. Our Montana acreage covers a large portion of a mappable anticline structure. This structure is interpreted to be capable of trapping hydrocarbons on many stratigraphic levels. Nearby fields currently produce oil and natural gas from Jurassic- and Cretaceous-aged sandstones," commented Roger Baker, PGeol, president and chief executive officer of Neo. "We look forward to working with Pacific Paradym in developing this property."
Harry Chew, president and CEO of Pacific Paradym, says: "We see the potential for sizable oil reservoirs trapped within the deeper horizons of this structure including the potentially oil bearing Bakken formation. Recent drilling of exploratory oil wells adjacent to the acreage substantiates industries interest in the hydrocarbon potential of the deep horizons in this region."
The LOI is subject to satisfactory due diligence by both parties and all necessary regulatory and securities approvals that are required. The company and Neo will enter into a formal farmout agreement that shall contain the terms and conditions as set forth in the LOI. A finder's fee will be payable in accordance with the policies of the TSX Venture Exchange.
In addition, the company wishes to announce that it has granted two million incentive stock options at a price of 20 cents exercisable for a period of five years to officers, directors, employees and key consultants of the company.
We seek Safe Harbor.