SASKATOON, SASKATCHEWAN - (February 6, 2017) Westcore Energy Ltd. (“Westcore” or the “Company”) (TSXV: WTR) is pleased to announce that it has entered into a farm-in agreement (the “Agreement”) with Eros Resources Corp. (“Eros”) to complete a 3 vertical well program on Westcore’s Flaxcombe oil field. Under the terms of the Agreement, Eros will fund 100% of the cost to drill, complete and bring the wells on production in exchange for a 90% interest in the wells before payout, and a 50% interest after payout. Eros shall also retain a right of first refusal on two subsequent drill programs under the same terms.
The Flaxcombe field is located 30 kilometres west of Kindersley, Saskatchewan. With four wells producing, the field is generating approximately 85 barrels of oil per day and there remain additional standing well-bores and shut-in production that can be re-initiated at any time. The field has been optimized with the use of WTR’s 100% owned water disposal facility, oil and water haulage capability and the use of casing gas to power the wells and to heat storage tanks.
The 3 well program is designed to drill offset locations to Westcore’s existing production wells at Flaxcombe. It is anticipated that the drill program will commence in mid February, with the intent of having all three wells on production before break-up.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Westcore Energy Ltd.
Vice President and Chief Operating Officer
Phone: (306) 653-2692
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, the 3 well drilling program that is referenced herein, shut-in production potentially being re-initiated and the earning of interests by Eros in Westcore’s Flaxcombe field. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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