Grid Petroleum Corp: Enters into Letter of Intent to Acquire a 10 % Working Interest in the Garcia #3 Well
DENVER, May 3, 2012 /PRNewswire/ -- Grid Petroleum Corp. (OTCBB: GRPR) : The Board of Directors are pleased to announce that Grid Petroleum has entered into a letter of Intent to acquire a Ten percent working interest, Seven point five percent net revenue interest, from a third party interest holder of the Garcia #3 well. (10.0 % WI, 7.5% NRI)
This Letter of Intent is subject to the establishment of an acceptable, ironclad drilling start date for the Garcia #3 Well, which start date is to be determined and agreed to prior to definitive documentation completion.
It is anticipated that the drilling start date will be announced and the closing of this transaction will take place prior to May 10, 2012.
"The Company has been negotiating over the last few weeks with the third party interest holders to obtain this interest to allow the forward progress of the development of the Garcia #3 Well drilling program," stated Grid Petroleum Corp, President James Powell. "The Company is now in a position to have a significant impact on the jump starting of this well and looks forward to a successful start of drilling activity in the very near future.
"The company will announce the start date which is a contingency to the closing of this investment."
The Company previously announced the following based upon information provided by the operator of the Garcia #3, which was dependant upon all interest holders meeting its respective cash calls.
"The Anticipated Start Date for the Drilling to Commence on the Garcia #3 shall be from April 21, 2012 to April 30, 2012.
The delay has been due to the inability of a third party joint venture investor in the Garcia #3 well to meet its cash call to retain its participation interest.
Grid Petroleum Corp is currently in negotiations to acquire an interest in the Garcia #3 well due to its recent availability.
The company has determined that this participation will enable the further development of the Mutual Area of Interest in a timely basis."
Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). They may not be offered or sold in the United States (as defined in Regulation S under the Securities Act), except pursuant to an exemption from the registration requirements of the Securities Act.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms such as estimates of a mean of undiscovered natural gas and estimates of a mean of undiscovered oil that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports filed by us from time to time with the SEC, available from us at www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
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