CALGARY, ALBERTA–(Marketwired – Jan. 28, 2015) – CaiTerra International Energy Corporation (TSX VENTURE:CTI) (“CaiTerra” or the “Company“) is pleased to provide a year-end update, announce the appointment of Ms. Perla Woo as President of the Company, and announce the filing of its financial and operating results as at and for the year ended September 30, 2014 and filing of its 51-101F1 reserves report.
CORPORATE AND OPERATIONS UPDATE
Since the Company’s acquisition of its 39.5 gross (19.75 net) sections prospective Bluesky Faust property, it has continued to evaluate and test this property’s Bluesky sand oil zone potential. Over the past year, the Company has commenced drilling operations on three wells on this property. The first horizontal well encountered pay but a workover program has been proposed to deal with the production casing not being able to be landed at depth. The second horizontal well also encountered pay but CaiTerra and its working interest partner are currently evaluating the drilling and log data to determine the future course of action for this well as drilling tools have been left in the hole. This well is now suspended. A third well which is a vertical well was drilled for lease preservation purposes but found insignificant pay and CaiTerra is currently preparing an application to convert this well into an injection well for a potential future EOR scheme.
CaiTerra’s working interest partner recently issued two independent notices to drill two title preservation wells on leases covering 1.25 gross (0.675 net) sections of land. After evaluating the prospect, CaiTerra has elected not to participate in these operations due to present economic conditions and possibility of operational risk, which may result in the potential forfeiture of the CaiTerra’s working interest in these 1.25 gross (0.675 net) sections of land.
Sousa and Cygnet
During the year, CaiTerra acquired leases covering a total of 53 sections of prospective oil and gas lands in Northern and Central Alberta. CaiTerra continues to evaluate these two properties with a view of drilling horizontal wells in Cygnet. Management believes that the Sousa property holds significant potential for both conventional and unconventional resources.
APPOINTMENT OF PERLA WOO AS PRESIDENT
The directors of CaiTerra are also pleased to announce that Ms. Perla Woo, P.Eng, of Calgary, Alberta, has accepted the appointment to the position of President of the Company. Ms. Woo brings over 20 years of successful experience in the petroleum industry in the fields of reservoir engineering, exploitation, and pressure transient analysis. She was a co-founder of Sunshine Oilsands Ltd. and a member of senior management at the company for a number of years. Prior to this appointment, Ms. Woo held the position of Vice President, Operations, at the Company. Mr. Songning Shen, Chief Executive Officer of the Company said: “I am pleased to announce the appointment of Perla Woo as the President of CaiTerra. I have the utmost confidence that Ms. Woo will contribute to the successful growth of the Company as we forge ahead with our plans to explore, develop and expand our assets.”
Mr. David Wu has resigned his position as President of the Corporation in connection with Ms. Woo’s appointment. Mr. Wu will continue to serve as the Chairman of the Board of Directors and as an independent director.
FINANCIAL UPDATE AND AUDITED FINANCIAL STATEMENTS, MD&A AND RESERVES REPORT
CaiTerra has filed with Canadian securities regulatory authorities its audited financial statements and accompanying MD&A for the three months and year ended September 30, 2014. CaiTerra has also filed the company’s 51-101F1 reserves report as at September 30, 2014. These filings are available for review at www.sedar.com.
Based on an assessment of indicators of impairment performed at September 30, 2014, an impairment test was completed on the Company’s assets in production and evaluation assets. As a result of the impairment test, the Company recorded an impairment of $3,109,830 in impairment charges for the Amadou and Lac La Biche property based on management estimates and reserve information.
COMPLETION OF PRIVATE PLACEMENT
CaiTerra also confirms the conclusions of its December 2014 private placement pursuant to which it issued an aggregate of 2,540,000 common shares on a “flow-through” basis pursuant to the Income Tax Act (Canada) at a price of $0.25 per flow-through common share for gross proceeds of $635,000. CaiTerra paid an aggregate of $28,750 in finders’ fees in connection with the private placement.
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.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. Forward-looking information and statements in this news release include, but are not limited to: CaiTerra’s plans with respect to its Faust properties and future EOR schemes and CaiTerra’s election to not participate in certain independent notice operations.
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by CaiTerra, including prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory and other required approvals. Although CaiTerra believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because CaiTerra can give no assurance that they will prove to be correct. There is no certainty that CaiTerra will achieve commercially viable production from its undeveloped lands and prospects.
Since forward-looking statements and information 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, the risks associated with the oil and natural gas industry in general, such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of CaiTerra are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and CaiTerra 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.
CaiTerra International Energy Corporation
Chief Executive Officer
CaiTerra International Energy Corporation