Business & Finance
Business and Finance
Business and Finance
Thu, May 24, 2012 Sunridge Announces Operational Update, Definitive Heavy Oil Development Agreement and Financing
May 24, 2012 13:36 ET
Sunridge Announces Operational Update, Definitive Heavy Oil Development Agreement and Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - Sunridge Energy Corp. ("Sunridge" or the "Company") (TSX VENTURE:SRG) is pleased to report ongoing evaluation of the second well of our North Central oil play location 102/14-22-47-25-W4, operated by Sunridge. The target area is being prepared for surface survey and drilling, approximately three miles south of our new pool discovery on the Company's 3000 acre contiguous land block. The existing log analysis indicates 15 metres of pay, twice as thick as our discovery well. Based on the perforations at 102/9-36-47-25 W4, the discovery well has an oil gravity of 18.3 API.
Sunridge and its recently formed wholly-owned subsidiary, Sun Oil Sands Inc., have executed a definitive agreement (the "Definitive Agreement") with Current Environmental Solutions ("CES"), effective immediately. Pursuant to the terms of the Definitive Agreement, the companies have formed a joint venture with SRG as operator having a 95% working interest and CES a 5% working interest. The Definitive Agreement confirms an unprecedented opportunity to extract oil from the second largest petroleum reserves in the world, focusing on reserves at previously unrecoverable depths between 75 to 250 metres where it's too deep to mine and too shallow for pressurized steam-injection. Shallow bitumen oil heating recovery has the advantages of minimal ground disturbance, no surface water requirement, less emissions and flexible power consumption.
Dwayne Tyrkalo, President and CEO, comments, "Our Sunridge team has a proven track record of successfully evaluating new oil opportunities and executing production operations in Western Canada. Sunridge has now partnered with a world leader in using electrical resistance heating to stimulate oil deposits at depth so they may be recovered at surface." Sunridge is in discussions with several oilsands companies for farm in arrangements. In addition, the Company is pursuing potential acquisitions of heavy oil lands and joint ventures in the Fort McMurray area with cored reserves, possessing ideal characteristics for high percentage recovery.
In addition, Sunridge announces its intention to complete a private placement of up to 3,750,000 units, with each unit (a "Unit") consisting of one common share and one flow through common share, at a total price of $0.40 per Unit, for total gross proceeds of up to $1,500,000. The Company may pay a fee or compensate an agent in conjunction with the offering. Closing of the proposed offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange. Sunridge intends to use the net proceeds of the offering to finance further exploration and development of its 3000 acre North Central oil development, including seismic and drilling. Management of the Company believes this concentrated acreage position supports a large inventory of low-risk vertical and horizontal locations targeting the upper Mannville formation.
ABOUT SUNRIDGE
Sunridge Energy is an exploration and production company focused on sustainable oil developments that are highly economic and decrease costs. Sunridge is publicly traded in Canada under the ticker SRG.
On behalf of the board,
Dwayne Tyrkalo, Chief Executive Officer
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Sunridge cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Sunridge's control. Such factors include, among other things: risks and uncertainties relating to Sunridge's ability to complete the drilling of its second well, or that there will be production from any wells drilled. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Sunridge undertakes no obligation to publicly update or revise forward-looking information.
Neither 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.
