CALGARY, ALBERTA--(Marketwired - Sept. 4, 2013) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Mr. Colin Soares, President of High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") is pleased to provide an update on the Company's progress.
The Company has been granted drilling licenses for 4 horizontal Montney test wells from the Alberta Energy Regulator (AER) and has received all approvals for surfaces leases. Construction crews have been mobilized and the Company has contracted a drill contractor to begin work immediately. High North is expecting to spud the first Block H Montney oil well shortly.
Recent activity in the area surrounding the Company's Block H lands has been encouraging. Directly offsetting Block H, 9 Montney horizontal oil wells have been licensed with 90 day production rates from 2 wells drilled to date at 486 and 360 BOE per day. Offset land sales in the area have reached as high as $175,000 per section.
High North has an option to acquire 129 sections of oil and gas leases strategically located on trend with recent Montney, Duverney and Nordegg hydrocarbon activity in the Kaybob area of Northwestern Alberta.
Non-Brokered Private Placement
On July 24th, 2013 the Company completed the first tranche of a non-brokered private placement financing for gross proceeds of $3,379,945. The financing resulted in the issuance of 6,492,700 units at a price of $0.35 per unit for gross proceeds of $2,272,445 and 2,768,750 flow-through common shares at a price of $0.40 per flow-through common share for gross proceeds of $1,107,500. Each unit consisted of one common share and one-half common share purchase warrant, with each whole warrant entitling the holder to acquire one common share for $0.50 within 24 months. A second tranche of the proposed financing is scheduled to close by the end of September, 2013.
About High North Resources Ltd.
High North Resources Ltd. is a TSX.V listed oil and gas development company with assets in the Peace River Arch area of Northwestern Alberta. The Company has an option to acquire 129 sections (82,560 acres) of oil and gas leases strategically concentrated into seven blocks with hydrocarbon potential, ranging from the Cretaceous Dunvegan through to the Devonian Granite Wash formation. Multiple conventional and unconventional oil targets are present including the Montney, Duvernay and Nordegg formations.
READER ADVISORY
Neither the 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.
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although High North believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of High North's management on the date the statements are made. Except as required by law, High North undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The forward-looking statements contained in this press release are made as of the date of this press release, and the Company 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 securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.