Passport Energy Ltd. Announces Land Acquisition
Calgary, Alberta CANADA, November 27, 2013 /FSC/ - Passport Energy Ltd. (PPO - TSX Venture), ("Passport") advises that it has entered into an agreement with a private oil and gas company to acquire 22 1/4 contiguous sections (5,760 acres) of 100% owned land in the Hardy area of SE Saskatchewan. The acquisition price will, subject to certain conditions being met, be paid by Passport in cash. Passport believes the acreage is located in a more prospective area of the new light oil Bakken play trend that it has been exploring for the past 2 years.
Over 70% of the new land block does not expire until 2017, and except for 2 1/2 sections, all of the acreage is encumbered by Crown Royalty only. Under the terms of the agreement, closing shall, subject to certain closing conditions, be completed on or prior to January 31, 2014.
Passport also wishes to announce that the Farm-in Agreement with a large intermediate oil company has been terminated. The intermediate has advised Passport that they are conducting a full technical review with the possibility of further development drilling by them on their remaining land holdings. Passport has earned 32.5% interest in 5 sections of land under the terms of the Farm-in Agreement. Recent drilling activity in this area has resulted in 3 successful light oil Bakken horizontal wells.
The new acquisition of lands will allow Passport to explore the Bakken trend, in a geologically more prospective area, with better royalties, and economics and at a pace dictated by funding from capital markets and internal cash flow. This acquisition will provide Passport with a much larger acreage base in the Hardy area, with higher working interests and a significantly lower royalty structure.
The Company trades on the TSX Venture Exchange under the trading symbol "PPO".
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release
For more information, please refer to the Company's public documents available on SEDAR (www.sedar.com).
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words ''may", "expected", "believes" and other words of a similar nature are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Passport believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to Passport's anticipated completion of the acquisition and the timing thereof, the anticipated prospects for the land acquired and the benefits of the completion of the acquisition for Passport. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions; and other factors, many of which are beyond the control of Passport. The acquisition is subject to certain conditions of closing and there is no assurance that all conditions will be met in a timely manner or at all. The forward-looking statements contained in this news release represent Passport's expectations as of the date hereof, and are subject to change after such date. Passport disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
For further information contact:
Bruce Murray Daniel Tiberio
President & CEO COO
Tel: 403-930-4061 Tel: 403-930-4070
Email: bmurray@passportenergy.com Email: dtiberio@passportenergy.com
Website: www.passportenergy.com
Shares Issued - 111,548,781
To view this press release as a PDF file, click onto the following link:
http://www.usetdas.com/pr/PassportNov272013.pdf
Source: Passport Energy Ltd. (PPO - TSX-V)
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