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Message: NR sell 1 proj of Allstar $24m...cash, now with mcap of $30$, sp + $0.12
SASKATOON, Oct. 30, 2012 /CNW/ - 49 North Resources Inc. ("49 North" or the "Company") (TSXV: FNR) announced today that Allstar Energy Limited ("Allstar"), a 100% owned subsidiary of 49 North, has executed a definitive agreement to sell its Kindersley Viking assets for cash consideration totalling $24 million (the "Transaction").
The Transaction will have an effective date of October 1, 2012 and is scheduled to close on November 16, 2012, or such earlier date that is agreed to by both parties. The proceeds from the disposition will be used to payout working interest holders, eliminate the indebtedness under Allstar's outstanding credit facility and to provide drilling capital for Allstar's Riverside and Red Pheasant properties.
Mr. Ashley Drobot, P. Geo, President and CEO of Allstar comments, "We are extremely excited to be able to monetize our Viking asset at this time and shift our capital towards our two larger projects. Recently obtained seismic and drilling results from our Riverside and Red Pheasant properties indicate extensive reservoirs within the boundaries of our current land holdings that are ready for development."
The Riverside play encompasses a 100% interest in 31,360 acres of multi zone (Basal Manville and Detrital zones) heavy oil play and Viking gas play. The Company has successfully recompleted 2 wells that are on production and flowing approximately 100 barrels per day combined. The Company has recently completed an extensive 20 sq. km. 3D seismic program on the property (see the press release of October 17, 2012) and plans to initiate a new drill program at Riverside based on the interpreted data before year end. Additionally, the Company acquired 2.6 sq. km. of 3D seismic which has yielded 5 additional development well targets in the vicinity of the 2 producing wells.
The Red Pheasant lands consist of a 100% interest in Indian Oil and Gas Canada (IOGC) agreements covering approximately 20,319 acres. The Red Pheasant IOGC lands have proven to contain Manville heavy oil into which the Company has drilled a total of 8 wells. Recent 3D seismic at Red Pheasant has identified a promising well inventory. Future programs will focus on drilling development wells into
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