Georox Resources Inc. Signs Participation Agreement for Coteau Lake, Saskatchewan
Kelowna, British Columbia, Canada, 9. May 2012: Georox Resources Inc. ("Georox" or the "Company") (GXR: TSX-V; OF6A: FRA) is pleased to announce that it has a shareholding agreement with regard to a farm-in agreement for land in the United States Signed Coteau Lake region in southeastern Saskatchewan and northeastern Montana.
The stake in this farm-in agreement includes three and one-fourth plots (2080 Acre) that have potential for the extraction of high-performance Mississippian oil (30 grade API). Georox will acquire 100% of the contractor's 85% share of the costs of sinking, completion and exploration of a horizontal exploration well to earn a 31,875% subsidy prior to disbursement or 21,25% after disbursement to the quarter of the property where the Test hole was drilled, and to obtain another quarter of a plot.
Upon receiving its first stake in the farm-in property, Georox may participate in option drilling to earn 31,875% of any proposed drilling prior to disbursement or a contingent of 21,25% after disbursement to another 320 property Acre to get. To do this, Georox will have to pay 42,5% of the cost of drilling, completion and equipment of such additional wells.
The contracted depth of the first well is approximately 1.975 meters, while the cost of drilling, completion and exploration for Georox is approximately $ 1,565 million. The hole must be drilled immediately after the dew phase in mid-May 2012. Three (3) additional drill points have been identified; There are further holes are drilled following the sinking and investigation of the first hole.
This farm-in agreement is considered by management to be an important strategic step in the company's growth and offers Georox the opportunity to participate in an oil exploration opportunity of great potential.
For more information, please contact:
Burkhard Franz, President & Chief Executive Officer
Tel: + 1-250-712-2213
Fax: +1-250-712-2215
Website: www.georoxresources.com
Precautionary note:
Neither the TSX Venture Exchange nor its regulators (as defined in the Articles of Incorporation of the TSX Venture Exchange) accept any responsibility for the adequacy or accuracy of this announcement.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this press release.
Forward-looking statements
This press release contains forward-looking statements about the company's future operations and other statements that are not based on historical facts. Forward-looking statements are often described using terms such as "will", "could", "should", "assume", "expect" and similar expressions. All statements in this press release that are not historical facts, including but not limited to statements about the company's future plans and objectives, are forward-looking statements and, as such, involve risks and uncertainties. There is no guarantee that such statements will prove to be truthful. Actual results and future events could differ materially from such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are exploration risks, which are periodically described in reports that are submitted to securities regulators.
Readers are cautioned that the assumptions used in making such information may prove to be incorrect. Certain events or circumstances could cause actual results to differ materially from the projections due to many known and unknown risks, uncertainties and other factors. Many of them are beyond Georox control. Consequently, we can not guarantee that forward-looking statements will be realized; Readers are therefore cautioned not to rely on forward-looking information. Such information, although considered appropriate by Company performance at the time of its preparation, may prove to be incorrect. Actual results could differ materially from the expected results. Forward-looking statements in this release are expressly limited by this cautionary statement. The forward-looking statements in this news release are as of the date of this news release and Georox undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise; unless expressly required by applicable securities laws.
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