2012-10-01 21:16:53 -
Calgary, Alberta CANADA, October 01, 2012 /FSC/ - Jadela Oil Corp.("Jadela")(JOC - TSX Venture),is pleased to announce that it has completed the sale of certain of Jadela's Eagle Ford shale mineral rights located in Maverick County, Texas in accordance with the terms of a purchase sale and exploration agreement announced on August 24, 2012. Strata-X, Inc., a subsidiary of Strata-X Ltd. (TSXV.SXE) has acquired an undivided 57.5% interest in 20,985 gross acres (approximately 15,200 net acres) of leased mineral rights and optioned mineral rights ("Option Assets"), with a further right to increase its interest to an undivided 75% interest. Strata-X, Inc. has also acquired an undivided 15% interest in the 660 net acres and related assets ("660 Acre Assets") that
was earned or acquired by Jadela upon drilling the El Indio #1H well.
The salient details of the transaction are as follows: Jadela's wholly owned subsidiary, Jadela Oil (US) Operating LLC ("Jadela USA") sold a 35% co-ownership interest in the Option Assets for US$1,000,000. From the sale proceeds, the sum of approximately US$870,000 was used to pay consideration to acquire certain options. Jadela USA has granted Strata-X, Inc. an option until October 15, 2012 to acquire an additional 17.5% co-ownership interest in the Option Assets for US$500,000 plus certain costs estimated to be $136,500. Strata-X, Inc. acquired an undivided 22.5% co-ownership interest in the Option Assets plus a 15% co-ownership interest in the 660 Acre Assets from a company related to Jadela. If Strata-X, Inc. does not exercise its option to acquire an additional 17.5% interest in the Option Assets, Jadela USA will retain a 42.5% co-ownership interest in the Option Assets (approximately 6,420 net acres) and a 65% co-ownership interest in the 660 Acre Assets (429 net acres). Strata-X, Inc. will be the operator of the Option Assets and Jadela USA will remain the operator of the 660 Acre Assets.
Strata-X Ltd. is an independent oil and gas exploration company based in Golden, Colorado. Strata-X has a portfolio of petroleum projects with over 200,000 net acres of leases in the United States. Strata-X Ltd. management has a proven track record of building substantial shareholder value from grass roots projects. The Chairman of the Company, Vancouver born and educated, Ron Prefontaine, was an executive director of two Australian Stock Exchange listed start-up companies which have recently been taken over for in excess of $3.2 billion (Arrow Energy Limited in 2010 - ASX.AOE) and $540 million respectively (Bow Energy Limited in 2011 - ASX.BOE).
Jadela is a junior oil and gas exploration company focused on and exploring and developing its Eagle Ford assets located in Maverick County, Texas. For further information, please contact:
Gregory J. Leia, President and CEO
Jadela Oil Corp.
Suite 1510 - 777 - 8th Street SW
Calgary Alberta T2P 3R5
Tel: (403) 265-7544
Fax: (403) 265 4138
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the terms, timing and completion of the option on the Option Assets. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the transaction will close.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations and assumptions made by the Company. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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.
To view this press release as a webpage, please click on the following link:
Source: Jadela Oil Corp. (TSXV: JOC)
Maximum News Dissemination by FSCwire. www.fscwire.com