Realm Energy International Corporation ("Realm Energy" or the
"Company") (TSX VENTURE: RLM) (www.realmenergy.ca) is pleased to
report on its successful land acquisition in Spain for shale gas
exploration.
Realm Energy, in collaboration with Halliburton Consulting, has
been evaluating shale plays in numerous sedimentary basins in Spain
for approximately two years. Following this detailed evaluation,
the Company submitted 10 applications in five discrete sedimentary
basins, collectively comprising over 2.2 million acres (8,903
km2).
Realm Energy confirms it has now been formally awarded two
permits, totaling 212,099 acres (858 km2) in the Cantabrian Basin
of Northern Spain, for a period of six years.
Regarding the eight permit applications still in process, the
Hydrocarbons Department of the Spanish Ministry of Industry,
Tourism & Commerce has formally advised Realm Energy that it
was also the successful applicant on six of the permits, which
collectively total 1,512,383 acres (6,120 km2) and are now in
process for formal award. Of the 10 permits applied for (covering
2.2 million acres), the success of only two permits (covering
503,887 acres (2,039 km2) is yet to be determined.
The minimum work programs on the 212,099 acres formally awarded
and the 1,512,383 acres undergoing formal award, collectively
1,724,482 acres (6,978 km2), require the Company to acquire
approximately 600 km of 2D seismic in the first two years. In years
3 & 4, the Company is required to acquire 300-900 km of 2D
seismic, and drill and test three vertical wells. In years 5 &
6, the Company's minimum commitment is to drill and test five
additional vertical wells. These selected permits all have
excellent pipeline infrastructure.
The Company believes the shales in all concessions are thermally
mature and may be prospective for natural gas production. Initial
analysis of existing well logs indicates that primary targets are
likely to be Eocene, Cretaceous and Carboniferous shales at depths
ranging from 6,000-11,000 feet. Other preliminary mineralogy
indications include:
-- Thickness: 600-1300 feet net
-- Kerogen Type: Type II/III
-- TOC: 1 - 8% wt
-- Porosity: 2 - 6%
-- Maturity: Ro approx. 1 - 2
-- Geomechanics: Brittle shales
-- Pressure: Normally pressured to over pressured
Craig Steinke, Chairman & CEO commented, "As a result of
this recent success, Realm Energy is now well positioned in five
discrete sedimentary basins making the Company one of the largest
landholders for shale gas exploration in Spain. This presents a
tremendous growth opportunity for the Company as Spain also has a
proven and stable fiscal system that ranks in the top 10%
worldwide. Economic conditions are also attractive, as Spain is
currently dependent on imports for its natural gas supply, and gas
prices in the country are typically at a premium to prices found
elsewhere in Western Europe."
About Realm Energy
Realm Energy is a Canadian domiciled global energy company
focused on driving the exploration and development of major shale
plays throughout Europe and emerging countries. The Company
presently has projects in Poland, Spain and Germany and is in the
process of acquiring additional petroleum and natural gas rights in
other European basins. Realm Energy is committed to leveraging the
most advanced shale technology to bring these resources into
production.
On August 26, 2011, Realm Energy announced it had reached an
agreement with San Leon Energy plc ("San Leon") whereby San Leon
will acquire all of the issued and outstanding shares of Realm
Energy (the "Acquisition"). The Company has given notice that it
intends to hold a special meeting on November 1, 2011 to seek
shareholder approval for the Acquisition. Further information, with
respect to the Acquisition, is available in the Company's press
release dated August 26, 2011, which can be viewed at Realm
Energy's website, www.realmenergy.ca, or at www.sedar.com.
REALM ENERGY INTERNATIONAL CORPORATION
Craig Steinke, Executive Chairman & CEO
Forward-Looking Statements: This document contains certain
forward-looking statements concerning Realm Energy, as well as
other expectations, plans, goals, objectives, information or
statements about future events, conditions, results of operations
or performance that may constitute "forward-looking statements" or
"forward-looking information" under applicable securities
legislation. Such statements or information involve substantial
known and unknown risks and uncertainties, certain of which are
beyond Realm Energy's control, including general business,
economic, competitive, political and social uncertainties; the
delay or failure to receive regulatory approvals, including rights
to lands under application, the characteristics and viability for
gas development on lands that have yet to be fully explored and
assessed, the willingness of third parties to conclude agreements
with Realm Energy on terms that are acceptable to management of
Realm Energy, and the ability of Realm Energy to secure sufficient
future funding to carry out all of its business plans.
Such forward-looking statements or information are based on a
number of assumptions which may prove to be incorrect. In addition
to other assumptions identified in this news release, assumptions
have been made regarding, among other things, commodity prices,
operating conditions, capital and other expenditures, and project
development activities.
Although Realm Energy believes that the expectations reflected
in such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because Realm Energy can give no assurance that such expectations
will prove to be correct. Forward-looking statements or information
are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by Realm
Energy and described in the forward-looking statements or
information.
The forward-looking statements or information contained in this
news release are made as of the date hereof and Realm Energy
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 or the TSX Venture Exchange. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell, nor
the solicitation of an offer to buy, any securities in the United
States, nor shall there be any sale of securities mentioned in this
press release in any state in the United States in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.
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.
Contacts: Media Contact: Amanda Bates Curve Communications
604.684.3170 ext. 112 / C: 604.306.0027
amanda@curvecommunications.com Investor Relations: Keir Reynolds
Director of Investor Relations 778.998.9242 keir@realmenergy.ca
Corporate Enquiries: Kevin Rathbun Chief Financial Officer
604.637.4974 ext. 33 info@realmenergy.ca www.realmenergy.ca
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