(via Thenewswire.ca)
December 23, 2014 / TNW-ACCESSWIRE / NWest Energy Corp. ("NWest" or the "Corporation") (TSX-V: NWN) announces that it has signed a Letter of Intent (LOI) to acquire Common Shares of Richelhoff Resources Inc. (RRI) of Saskatchewan. Richelhoff Resources Inc. is a private oil company with oil production of approximately 30 bbl/d. The offer from NWN includes $ 200,000 cash and shares and closing of transaction is subject to a number of conditions including: (1) NWest Energy and Richelhoff Resources entering into a Definitive Agreement (2) NWN and RRI completing a due diligence review to the satisfaction of both NWN and RRI.
The proposed arms length transaction includes NWest acquiring all of the issued and outstanding shares of Richelhoff Resources for $ 200,000 in cash and the issuance of 3,500,000 common shares in the capital of NWest . Upon completion of the Transaction RRI will become a wholly - owned subsidiary of NWest and RRI will maintain its current debt of $250,000 and lease obligations of $ 750,000. NWest Energy presently has 13,932, 179 Common Shares Outstanding and approximately 4 million warrants outstanding. The Transaction is subject to approval by the TSX Venture Exchange.
RRI is a private Saskatchewan Corporation focused on Oil and Gas properties in Saskatchewan and Western Canada. RRI management includes senior oil and gas field operational experience and will be incorporated into management team of NWest upon closing of transaction. RRI has oil wells located in the Hoosier / Major area in the Bakken and Manville formation in West Central Saskatchewan. RRI also has working interest agreements on two wells with Northern Blizzard Resources Inc. (T.NBZ). RRI has seven (7) wells , five (5) of which are producing including an injection well. A qualified Reserves Evaluator has not been engaged to value the underlying reserves .
Kevin Aylward CEO NWest commented "NWest is very excited about the acquisition of Richelhoff Resources and looks forward to Oil production and generating revenue and profit for the company and its shareholders. Calvin Richelhoff has extensive Heavy Oil operational experience and we are pleased to be working with him to expand existing production facilities and the optimization and development of new well production. "
Calvin Richelhoff, President of Richelhoff Resources Inc. commented: " I am excited to be joining the NWest Energy team to enhance existing production and create new production utilizing a hands on well ,in field approach, that in turn will increase netbacks in any market condition. "
Bill Fleming NWest Energy CFO states that the RRI acquisition is an integral part of our strategy to acquire and optimize cash producing assets and that the acquisition is a major focus to NWest oil and gas including pursuing Enhanced Oil Recovery partnerships.
About NWest Energy
Further information regarding the Corporation is available at www.nwestenergy.com.
For further information:
Kevin Aylward B. Comm Bill Fleming
President & CEO Chief Financial Officer
(902) 405 - 4751 (902) 405 - 4751
(709) 693-0080 cell
kaylward@nwestenergy.com
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.
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Corporation's expectations. Certain risk factors may also affect the actual results achieved by the Corporation. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in NWest's disclosure documents on the SEDAR website at www.sedar.com.
There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Corporation undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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