CALGARY, ALBERTA–(Marketwired – Nov. 28, 2014) – Elkwater Resources Ltd. (“Elkwater” or the “Company”) (TSX VENTURE:ELW) announces that it has filed on SEDAR its third quarter unaudited condensed interim financial statements and corresponding Management’s Discussion and Analysis (“MD&A”) for the three and nine month periods ended September 30, 2014. The financial statements and MD&A will be available on SEDAR at www.sedar.com and on Elkwater’s website at www.strikerexp.com.
HIGHLIGHTS SUMMARY
During the quarter ended September 30, 2014, the Company positioned itself for future growth through the completion of a recapitalization transaction consisting of a change of management and board of directors, a $25.0 million private placement and a rights offering to existing Elkwater shareholders which resulted in an additional $440,000 in proceeds. The new management team’s strategy is to acquire and develop light oil resource plays, predominately in Alberta. During the quarter, the team actively reviewed and evaluated numerous acquisition opportunities.
Subsequent to the end of the quarter, and through late November, Elkwater achieved the following milestones:
For additional information in respect of Exoro and the Killam Assets, please see the Company’s news release dated October 15, 2014.
OPERATIONS UPDATE
In support of its growth strategy, the Company plans to spend approximately $7.0 million in the aggregate in November and December 2014. These expenditures will be used to drill up to 3 (3.0 net) Killam horizontal oil wells during the fourth quarter, targeting medium gravity oil in the Lloydminster sands. The Company intends to initially complete up to 2 (2.0 net) of the wells prior to year end using multi-stage fracture stimulation. In addition, Elkwater is also planning to drill up to 2 (1.8 net) Pembina Cardium horizontal oil wells in the Drayton Valley area by the end of December, of which up to 1 (1.0 net) well will be completed prior to year end with 1 (0.83 net) well expected to be brought on production concurrent with the third Killam well in early 2015.
Capitalizing on its balance sheet strength, Elkwater continues to seek value driven acquisitions, including the consolidation of land positions in existing project areas, as well as seeking new opportunities in complementary shallow, light oil horizons within its Central Alberta core region. In addition, the Company is sharply focused on delivering high growth rates in production and cash flows, as well as adding future inventory locations to sustain longer-term growth.
ABOUT ELKWATER
Elkwater Resources Ltd. (to be renamed “Striker Exploration Corp.”), is a growth-oriented light oil focused company operating predominantly in Alberta. Striker’s full-cycle business plan provides an excellent opportunity to reposition Elkwater as a high-growth junior E&P company. With an experienced management team and a strong, committed Board, the Company intends on growing through timely strategic acquisitions and drilling. Elkwater currently trades on TSX Venture Exchange under ticker “ELW”.
APPOINTMENT OF INVESTOR RELATIONS FIRM
Elkwater also announces it has retained 5 Quarters Investor Relations, Inc. (“5QIR”) to provide strategic investor relations (IR) services on behalf of the Company. Under the terms of the agreement, 5QIR will provide IR services to the Company for a term of five months. As consideration for the services, 5QIR will be paid a fee of $3,250 per month. 5QIR acts at arm’s length to Elkwater and does not have any interest, directly or indirectly, in Elkwater or its securities, or any right or intent to acquire such an interest.
The appointment of 5QIR remains subject to approval by the TSX Venture Exchange.
[expand title=”Advisories & Contact”]READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Company’s growth strategy, the Company’s drilling plans and timing thereof and the change of name of the Company to “Striker Exploration Corp.”. In addition, the use of any of the words “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “can”, “will”, “should”, “continue”, “may”, and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to expectations and assumptions concerning the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; as the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the Company’s most recent Annual Information Form dated July 25, 2014 for the year ended December 31, 2013, on SEDAR at www.sedar.com, and the risk factors contained therein.
The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
ADVISORY ON PRODUCTION INFORMATION: Unless otherwise indicated herein, all production information presented herein has presented on a gross basis, which is the Company’s working interest prior to deduction of royalties and without including any royalty interests.
BARRELS OF OIL EQUIVALENT: The term “boe” or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (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. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
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 news release.
Elkwater Resources Ltd.
Doug Bailey
President and Chief Executive Officer
(403) 262-0242
Elkwater Resources Ltd.
Neil Burrows
Vice President, Finance and Chief Financial Officer
(403) 262-0242
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