Vancouver, BC (February 6, 2017) Eros Resources Corp. (TSX.V: ERC) (“Eros” or the “Company”) is pleased to announce it has entered into an agreement to acquire a working interest in three vertical wells to be drilled on the Flaxcombe heavy oil field, wholly owned by Westcore Energy Ltd. (TSX.V: WTR). Eros will invest up to $1,600,000 to acquire a 90% working interest in the wells until its investment is recovered and a 50% working interest thereafter. In addition, Eros will maintain a right of first refusal to participate on the same terms on two subsequent drill programs to be drilled on the same lands, to a maximum of $1,600,000 per future drill-program.
The Flaxcombe field is located 30 kilometres west of Kindersley, Saskatchewan. Current production from four conventional wells is approximately 85 barrels of oil per day in total and there remain additional standing well-bores and shut-in production which can be re-initiated at any time. The field has been optimized with the use of WTR’s 100% owned water disposal facility, water and oil haulage capability and the use of casing gas to power the wells and to heat storage tanks. Westcore’s operating team has a proven track record of success in heavy oil production in Saskatchewan.
The 3 well program is designed to drill offset locations to Westcore’s existing production wells at Flaxcombe. It is anticipated that the drill program will commence in mid February with the intent of having all three wells on production before break-up.
R. Stewart, Eros CEO stated, “This investment offers the potential to generate near-term cash flow for Eros and provides the company with the option to participate in subsequent programs at our election, providing it meets our expectations.”
Eros Resources Corp. is a well-financed Canadian public company focused on the exploration and development of resource projects in North America. Eros also holds an investment portfolio which includes 48 million shares of Skeena Resources Ltd., which is advancing exploration on 3 exciting projects, Spectrum-GJ, Snip and the past-producing Porter Idaho silver mine in the Golden Triangle of the Stikine Arch of northwestern British Columbia.
On behalf of the Board of Directors of
Eros Resources Corp.,
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation, including, among other things, information with respect to this presentation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
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