Nextraction to Increase Interest In Pinedale Field, WyomingOctober 8, 2009
Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction"), has entered into a Farm-out and Joint Venture Agreement with its partner, Vantage Energy Green River, LLC, ("Vantage") a private company located in Englewood, Colorado, USA to drill an initial test well in the Pinedale Anticline field in Sublette County, Wyoming. Nextraction currently owns twenty five percent (25%) of the leasehold area, and under the terms of the farm-out agreement, Vantage will farm-out its seventy-five percent (75%) interest in the initial well to Nextraction. Upon Nextraction receiving one hundred and fifty-percent (150%) payout, Vantage will have the option to participate as to a 26.25% working interest in the well. Nextraction will then have the option to drill a second well under the same terms as the initial test well. Wells costs are estimated at $6.5 million (US) per well and subject to completion of financing Nextraction intends to commence drilling in 2009.
Nextraction Energy Corp. is a Canadian junior oil and gas company focused on the exploration of areas that have large scale potential where the Company can utilize its exploration and recovery expertise to competitive advantage. The Company has offices in Vancouver, BC, Canada. In addition to the Pinedale area of western Wyoming, the company has plans to develop a large Chattanooga shale gas resource play in Eastern Kentucky.
Vantage Energy Green River LLC, a subsidiary of Vantage Energy LLC, is a privately owned United States unconventional natural gas resource company, exploring primarily tight gas sands, gas shales and coalbed methane, onshore in North America. Nextraction has engaged Vantage to serve as operator of the project since the Company believes Vantage's management has experience in the highly-technical completions required to produce gas from the Pinedale Anticline.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
FORWARD LOOKING STATEMENTS DISCLAIMER
Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, statements or information about the anticipated benefits resulting from the Farmout and Joint Venture Agreement, our business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the accuracy of recovery rates and production in surrounding areas. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
Although we have attempted to identify factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. As actual results and future events could differ materially from those anticipated in such statements and information, readers should not place undue reliance on forward-looking statements or information. The forward-looking statements and information contained in this press release are made as of the date of this press release and, except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. All forward-looking statements and information made herein are qualified by this cautionary statement. Interested parties are invited to have an independent review of the projections contained herein for concurrence and accuracy.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information on behalf of Nextraction Energy Corp, please contact:
Mark S. Dolar , President and CEO
Phone: (604) 488-3633
Cell: (801) 502-5085