Guardian Exploration Enters Into 79,000 Acre Alberta Bakken Farm-In Agreement and Appoints Chief Fin
October 14, 2011
Under the terms of the Agreement, Guardian has committed to acquiring $2,000,000 of new geophysical survey data before July 31, 2012. Upon completion of the survey commitment the lands will be divided into three equally sized earning blocks and prior to December 31, 2012 Guardian will drill a Bakken test well at a location of its own choosing, earning the Company a 50% working interest in the earning block in which the drilling occurs. Guardian will then have the right to drill two further option wells with each well earning the Company a 50% working interest in the earning block in which each drilled well is located. Guardian will be responsible for 100% of the costs associated with the survey commitment and the three earning wells. Upon completion of the stated commitments and option wells, Guardian will hold a 50% working interest in the 79,000 acre farmout lands.
Guardian's initial examination of historical well logs on the farmin lands indicate thicknesses of 35 to 50 feet in the prospective Three Forks and Bakken zones. The Company sees similarities with Glacier County well logs, where Newfield Exploration and Rosetta Resources continue to drill and frac horizontal wells into the aforementioned formations. Guardian continues to monitor the Glacier County, Montana activity closely as the operators in the area have put several wells on production but have yet to publicly release any production figures, with the closest producing well being only seven miles away from existing Guardian lands.
"Guardian is excited with the potential that this partnership may bring to the shareholders of both companies. Our evaluations thus far give us a lot of confidence that the Alberta Bakken fairway continues through these lands and will provide the Company with years of drilling locations," states Graydon Kowal, Guardian President and CEO.
At this time Guardian would also like to announce the engagement of Mr. Mike Dalton as the new Chief Financial Officer of the Corporation. Mr. Dalton has over 15 years of experience in tax and accounting with Canadian public and private companies, and has been acting as a consultant to the Company since 2010. Some of Mr. Dalton's previous experience includes positions at Canadian Natural Resources, PricewaterhouseCoopers, Total E&P Canada, and Central Global Resources. In conjunction with Mr. Dalton's appointment, the Company has granted him 200,000 stock options. The options, which are convertible into common shares of Guardian, have an exercise price of $0.10 per share, will vest over two years, and have a five year term to expiry.
Guardian is a Calgary-based corporation engaged in the acquisition, exploration and development of resource properties. Common shares of the company trade on the TSX Venture Exchange under the trading symbol "GX".
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be 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.
- Source: Marketwire, Guardian Exploration
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