Aurex Energy Corp. announced that it has signed, through its wholly-owned US subsidiary, an agreement with a private, arms-length third-party.
Aurex Energy Corp. (“AURX” or the “Company”) (TSXV:AURX) today announced that it has signed, through its wholly-owned US subsidiary, an agreement (the “Agreement”), with a private, arms-length third-party (“Partner”), to re-work a selected number of natural gas wells located in the Barnett Shale, Fort Worth basin, Texas, USA. The re-work program is expected to start immediately.
As disclosed in a news release dated October 8, 2019, the Partner will contribute US$2.5 million to the project to re-work shut-in natural gas wells, bringing them back into commercial production. Under the terms of the Agreement, the Partner will earn a 60% interest in net cash-flows from natural gas production from a selected number of natural gas wells, as defined in the Agreement.
The Company’s primary property (held in the wholly-owned US subsidiary) consists of 10 shut-in natural gas wells (8 horizontal wells and 2 vertical wells) on 1,400 acres located in the Fort Worth Basin. Total Proved Plus Probable Reserves are 24.6 Billion Cubic Feet (“BCF”) of natural gas. The estimated Net Present Value (“NPV”) of the net revenue (after all operating costs, royalties and taxes) from the Proved Plus Probable Reserves, using forecast pricing, is US$22.0 million. Peak operating cash-flow (before income taxes), after reworking all wells, is estimated at US$10.8 million per year. Estimated reserves and economic valuations are from a NI51-101 report titled “Appraisal Of Certain Oil And Gas Interests located In Hill, Hood, Parker And Tarrant Counties, Texas As Of January 1, 2019” prepared by a Qualified Reserves Evaluator (“QRE”), MKM Engineering, for Canadian Platinum Corp. (now Aurex Energy Corp.) and dated December 28, 2018.
Gary Billingsley, President, comments: “Aurex is pleased to have finalized this Agreement which now allows us to immediately proceed with the development of our natural gas project, and work towards our goal of generating near-term cash-flow.”
About Aurex Energy Corp.
Aurex Energy Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. Aurex is focused on the acquisition and development of a diversified portfolio of resource properties critical to current and future energy production. This includes natural gas for LNG, base metals including copper and zinc, platinum group elements, strategic metals including cobalt, and precious metals.
AUREX ENERGY CORP. TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL “AURX”.
For more information, including news releases and technical reports providing more detail on the contents of this news release, please visit our website at www.aurexenergy.ca
For further information:
Aurex Energy Corp.
Gord Dent, Manager Investor Relations
To receive information by e-mail, visit www.aurexenergy.ca and click “Contact”.
NEITHER THE 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.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this release and except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release may contain statements within the meaning of safe harbour provisions as defined under United States Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of the management of Canadian Platinum and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.