/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
KELOWNA, B.C., July 15, 2014 /CNW/ - Georox Resources Inc.
("Georox" or the "Corporation") (GXR:TSX-V; OF6A:FRA)
has completed an independent geological study of the
Corporation's Red Earth property in northwest Alberta. Red Earth was acquired for
$6.1 million on May 9 with an effective date of April 1, 2014 as part of the Red Earth/Otter
package. The Red Earth area is known for its light oil production
from the Slave Point and Granite Wash formations. Both formations
are present on Georox' land.
Georox produces primarily from the Granite Wash Q4Q Pool that
was discovered in 2004 and contains an Upper and Middle Sand
interval. Eight wells are currently producing from this pool and
one well is producing from the Slave Point formation. Correlations
to Slave Point production by Pennwest and other producers to the
north and west of the property indicate that a Slave Point
horizontal well should be a target well in this field. Total
production from the Red Earth field is currently averaging 150
boepd.
In Summary the geological study recommends:
1) To develop two additional
locations from the upper sand sequence in the Granite Wash Q4Q pool
where the majority of the production is coming from.
2) To target the middle interval
of the Slave Point formation for a horizontal well that should
parallel along the east side of Section 11 running in a north to
south orientation.
3) To work over and frac two
locations to increase productivity.
4) To convert one or two marginal
oil producers to water injectors to dispose of produced water
to:
a) provide the existing oil reservoir with pressure support that
may increase recovery factors up to 15% greater that the
primary recovery predicted for the pool.
b) eliminate most of the 3rd party processing and
water disposal fees (reduce operating costs by up to $12.00/bbl of oil).
About Georox
Georox is a Canadian natural resource company engaged in the
acquisition, exploration and development of oil and gas properties
in Western Canada.
Production volumes are commonly expressed on a barrel of oil
equivalent ("BOE") basis whereby natural gas volumes are converted
at a ratio of six thousand cubic feet to one barrel of oil.
The intention is to convert oil and natural gas measurement units
into one basis for improved analysis of results and comparisons
with other industry participants. The term BOE may be
misleading, particularly if used in isolation. The conversion
ratio is based on an energy equivalent method and does not
represent an economic value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating
to the future operations of the Corporation and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward looking statements that
involve risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. More particularly, it contains
forward-looking statements concerning: (i) production (ii) planned
drilling, development and waterflood activities, (iii) the
potential number of drilling locations at certain of the
Transactions properties, and (v) potential development
opportunities associated with the Transaction.
Although Georox 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 Georox 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; 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 and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation
of any forward-looking information may prove to be incorrect.
Events or circumstances may cause actual results to differ
materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of Georox. As a result, we cannot
guarantee that any forward-looking statement will materialize and
the reader is cautioned not to place undue reliance on any
forward-looking information. Such information, although
considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from
those anticipated. Forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement. The forward-looking statements contained in this
news release are made as of the date of this news release, and
Georox does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by Canadian securities law.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in the United States. The Units (or constituent
securities) have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Georox Resources Inc.