2013-09-05 22:56:24 -
Calgary, Alberta CANADA, September 05, 2013 /FSC/ - Reef Resources Ltd. (REE - TSX Venture), ("Reef" or the "Company") announces it has closed on an additional $15,000 of its non-brokered private placement (the "Offering") of up to 16,000,000 units of the Company ("Units") at a price of $0.025 per Unit, with each Unit consisting of one (1) common share in the capital of the Company (a "Common Share") and one-half (1/2) non-transferable Common Share purchase warrant (each whole warrant, a "Warrant"). Total raised to date is $131,050.
Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.05 for a period of 12 months from the closing date of the Offering and thereafter at
a price of $0.10 until the date that is 24 months from the closing date. Non-arms length persons will be subscribing for $26,050 of the total Offering. The financing was completed in accordance with the temporary relief measures from certain pricing requirements announced by the TSX Venture Exchange on August 17, 2012 and extended December 12, 2012 and April 12, 2013.
Reef also announces it has reached agreements with 17 creditors to settle outstanding debt of $488,862 through the issuance of 9,773,638 Common Shares (at a deemed price of $0.05 per Common Share). Two officers and directors of the Company settled debt for $75,000.
All of the above transactions have received the approval of the TSX Venture Exchange. All securities issued will be subject to a 4 month hold period.
For more information please contact:
President & CEO
Suite 1120, 444 -5th Ave. SW
Calgary, AB T2P 2T8
T: (403) 251-9447
C: (250) 460-2640
Footnote: The Company's Ontario asset has gas storage rights, gas re-injection permit for gas recycle, NGL recovery, enhanced oil recovery and arbitrage. A key component of Reef's Ontario strategy is to identify and exploit undervalued prospects in the Ontario basin by utilizing the company's 23,500 acres of proprietary 3D seismic. In addition to its Ontario Properties, Reef has identified multiple oil and gas acquisition and development opportunities throughout Canada.
Forward-Looking Statements. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Certain financial and operating information included in this press release are based on audited financial results for the year ended July 31, 2012 and are subject to the same limitations as discussed under "Forward- Looking Statements" set out above.
Information Regarding Disclosure on Oil and Gas Reserves. The reserves data set forth above is based upon an independent reserves assessment and evaluation prepared by AJM Deloitte with an effective date of July 31, 2012 (the "AJM Deloitte Report"). The presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company's reserves using forecast prices and costs based on the AJM Deloitte Report. The AJM Deloitte Report has been prepared in accordance with the standards contained in the COGEH and the reserve definitions contained in NI 51-101. All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. The reserve data provided in this release only represents a summary of the disclosure required under NI 51-101. Additional disclosure will be filed on www.sedar.com on or before November 29, 2012.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
Trading in the securities of Reef Resources Ltd. should be considered highly speculative. 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 PDF, please click on the following link:
Source: Reef Resources Ltd. (TSX-V-REE) www.reefresources.ca
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