of Two Wells at South Reston or One Well at South Reston and One Well at Kirkella:
|Costs Reimbursement to||N/A||$50,000|
|South Reston:||Well #SR1||Drilling||$210,000||Drilling||$210,000|
|South Reston:||Well #SR2||Geophysics, etc.||N/A||Geophysics, etc.||$100,000|
II. Costs Allocation Assuming Abandonment of all Three Wells:
|Payment to Petro|
|(All Costs 50/50)||Testing||$20,000||Testing||$20,000|
Other Matters Pertaining to the Joint Venture
Petro One will be Operator of the JV. No fees will be charged by Petro One for managing the drilling and completion phases of any program, but a project management fee of 15% will be charged by Petro One after completion of any well. The costs set out in this release are estimates only, but are considered reliable as they are based on Petro One’s experience in the area and analysis by its independent engineering consultant. Accordingly, Goldstrike’s obligation in respect of any drilling and completion cost overruns associated with any well will be capped at 120% of its estimated share of costs. Goldstrike’s earned interest in each well will be from surface to the base of the producing formation, in all a cases subject to government royalties and the gross overriding royalty payable to previous owners (see MD&A). The benefit of all royalty holidays will also be shared ratably.
Conditions Precedent to Commencement of the Joint Venture
Goldstrike’s obligation to proceed with the JV is subject to execution and delivery of a definitive agreement acceptable to Goldstrike and completion of due diligence to its satisfaction by November 30, 2013. Petro One’s comprehensive geological analysis and seismic and other surveys have been provided to Goldstrike’s independent geologist carrying out due diligence for Goldstrike. There can be no assurance that the JV or any other financial arrangement for drilling Petro One properties will be concluded.
The proposed JV is subject to acceptance of required filings by the TSX Venture Exchange, and will constitute a Fundamental Acquisition by Goldstrike under the Policies of the Exchange. Petro One and Goldstrike have one director in common. However, the proposed JV will not be a Related Party Transaction under Multilateral Instrument 61-101. Further developments will be announced as they occur.
Goldstrike’s Ron Stack Wins Prospector of the Year Award for Plateau South Gold Discovery
Goldstrike also takes this opportunity to report that the 2013 Yukon Prospector of the Year Award went to Ron Stack for his discovery of the “Goldbank Trend” on Goldstrike’s Plateau South property. Goldstrike recognized the importance of Ron’s contribution to the project, when it named the “Ron Stack Zone” in his honour. Ron has been a valued member of Goldstrike’s field team. The Award was presented to Ron at the 41st Yukon Geo-Science Forum Awards Banquet. Congratulations Ron.
National Instrument 51-101 Disclosure
BOE means barrels of oil equivalent. It may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead.
Oil production during a period is generally expressed in terms of “barrels per day” (“bbl” or “BBL”), which indicates the total oil produced during a period divided by the number of hours that the well was in production during that period. “Barrels per day” is indicative of flow rate while a well is in production and does not mean that such well was in constant production during such period.
Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Prospective resources described in report and in this document are “undiscovered resources” as defined in the Canadian Oil and Gas Evaluation Handbook. Undiscovered resources are defined as those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. The estimates of the potentially recoverable portions of undiscovered resources are classified as prospective resources. Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. They are technically viable and economic to recover. Pursuant to s. 5.9(d)(v) of NI 51-101, the Company cautions that that there is no certainty that any portion of the resource will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resource.
The estimates in this release have been prepared by independent qualified reserves evaluators in the form of reports under National Instrument 51-101 (“NI 51-101”) in accordance with the Canadian Oil and Gas Evaluation Handbook. The reserves evaluators having prepared the reports have consented in writing to the disclosure of information derived from the reports and set out herein.
Pursuant to s. 5.2 of NI 51-101, the Company advises that the estimates have been made assuming the development of the referenced properties will occur, without regard to the likely availability to the Company of funding required for that development.
ON BEHALF OF THE BOARD
PETRO ONE ENERGY CORP.
Peter Bryant, President & Director
ON BEHALF OF THE BOARD
GOLDSTRIKE RESOURCES LTD.
Terrence E. King, President & Director
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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.
Certain statements contained herein constitute forward-looking statements or information (collectively “forward-looking statements”) within the meaning of applicable securities legislation, including, but not limited to management’s assessment of future plans and operations, including: drilling plans and potential locations; expected production levels; development plans; reserves growth; production and operating sales and expenses; reservoir characteristics; the results of applying certain operational development techniques; certain economic factors; and capital expenditures.
Forward looking statements are typically identified by words such as “anticipate”, “estimate”, “expect”, “forecast”, “may”, “will”, “project” and similar words suggesting future events or performance or may be identified by reference to a future date. In addition, statements relating to oil and gas reserves and resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described, as the case may be, exist in the quantities predicted or estimated and can be profitably produced in the future. With respect to forward looking statements herein, the Company has made assumptions regarding, among other things; future capital expenditure levels; future oil and natural gas prices; ability to obtain equipment and services in a timely manner to carry out development activities; ability to market oil and natural gas successfully to current and new customers; the ability to obtain financing on acceptable terms; and the ability to add production and reserves through development and exploitation activities. Although the Company believes that the expectations reflected in the forward-looking statements contained herein, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included herein, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause the Company’s actual performance and financial results in future periods to differ materially from any estimates or projections. The forward-looking statements contained herein are made as of the date hereof. The Company does not undertake any obligation to, nor does it intend to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement. In addition, readers are cautioned that historical results are not necessarily indicative of future performance.