CALGARY, ALBERTA--(Marketwired - April 28, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") wishes to announce that it has exercised an option (the "Option") to acquire a 100% interest in a total of seven Crown petroleum and natural gas leases (the "Leases") with Redhill Resources Corp. ("Redhill"). Redhill acquired the petroleum and natural gas leases in the Government of Alberta's December 18, 2013 public offering of Crown land rights (the "Auction"). Total consideration for Redhill's acquisition of the leases was $1,961,647 (the "Bid Amount"). The leases total 1,792 hectares and are contiguous with the Company's Girouxville property in north-western Alberta.
Under the terms of the memorandum of understanding signed December 18, 2013, and previously announced December 20, 2013, Redhill granted High North the Option to purchase the Leases within four months of the Auction by paying to Redhill the Bid Amount plus a premium of 10%. Redhill will retain a 2.5% gross overriding royalty in any production from the Leases.
High North's Girouxville property is located in Townships 075 to 076, Range 21 W5M, approximately 200 miles northwest of Edmonton, Alberta. The Company holds a 100 percent working interest in three horizontal wells producing 28 degree API oil from the Montney Formation, downdip in an oil leg and adjacent to offset production.
The seven Crown petroleum and natural gas leases are located adjacent to and north of the Company's previously drilled 09-02 and 16-02 wells which came on production in January 2014. High North now holds a contiguous block of lands comprising 20 sections, directly offsetting significant production for an intermediate oil and gas producer.
"With the acquisition of these lands, High North now has an extensive inventory of proven undrilled locations which our team intends to develop over the coming months," stated Colin Soares, President, Chief Executive Officer and Director.
Reader Advisory Regarding Forward-Looking Statements
Certain statements in this news release may be deemed to be "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Corporation. 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 or be achieved. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes.
Although High North believes the expectations expressed in such forward-looking statements are reasonable based on information available to it on the dates such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Readers should not place undue importance or reliance on the forward-looking information and should not rely on the forward-looking information as of any date other than the date hereof. Further, statements including forward-looking information are made as of the date they are given and 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 information and statements contained in this news release are expressly qualified by this cautionary statement.
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.