CALGARY, ALBERTA--(Marketwired - Sept. 24, 2013) - High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") is pleased to announce that drilling has commenced on the Company's second Montney horizontal well.
The Montney #2 well was spudded on Sept. 22st and drilling in ongoing. Completion design of the Company's Montney #1 well is underway.
Recent activity of other operators in the area surrounding the Company's Block H lands has been encouraging. Directly offsetting Block H, 10 Montney horizontal oil wells have been licensed with six drilled to date. Two of these wells have been reported producing at rates of 486 and 360 BOE1 per day.
The Company also wishes to announce that it has entered into an Amending Agreement with Cava Resources Inc. (the "Optionor") dated September 18, 2013 whereby the terms of the original Option Agreement dated February 20, 2013 (as announced on February 22, 2013) have been amended. The $200,000 payment due to the Optionor has been restructured as follows:
- the Corporation shall issue 300,000 units to the Optionor at a deemed issue price of $0.35 per unit, with each unit comprised of one common share of the Corporation and one-half of one warrant. Each full warrant is exercisable into a common shares of the Corporation for a period of 24 months at an exercise price of $0.50 per share;
- $10,000 upon the execution of the Amending Agreement;
- $10,000 by October 1, 2013;
- $10,000 by November 1, 2013; and
- $65,000 by December 23, 2013.
The Amended Agreement has been exercised, subject to TSX Venture Exchange approval. All securities to be issued to the Optionor shall be subject to a statutory four month hold period from the date of issuance.
In its efforts to further strengthen the Company's presence in its area of operations, Colin Soares, President of the Company, has been appointed to the role of Chief Executive Officer. Mr. Arn Schoch, former CEO, will continue as a member of the board of directors of the Company.
Mr. Soares is a professional engineer who received his BSc in chemical engineering from the University of Waterloo in 1978. Mr. Soares has a history of identifying strategic opportunities and increasing value through optimization of horizontal drilling and completions. Mr. Soares was president and founder of Rocor Resources Inc., a privately owned exploration company that proved the Montney resource play in the Monias, B.C., area, south of Fort St. John. Rocor Resources was sold to Petrobank for over $50-million in 2008.
(1) BOE Cautionary Statement - BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1Bbl is based on an energy equivalency at the burner tip and does not represent a value equivalency at the wellhead.
About High North Resources Ltd.
High North Resources Ltd. is a TSX.V listed oil and gas development company with assets near 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.