TRAVERSE CITY, Mich., April 26, 2006 (PRIMEZONE) -- Cadence Resources Corporation (OTCBB:CDNR), through its subsidiary Aurora Energy, Ltd., completed a transaction involving the acquisition of a 45% working interest in over 21,000 acres of prospective New Albany Shale acreage located in the Indiana geologic basin. Rex Energy will be working as the Operator of this project, with a commitment to drill and complete 4 horizontal wells within 18 months.
William Deneau, President and CEO of Cadence said, "This transaction supports our vision of increasing our leasehold position with intent to drill -- particularly in the New Albany Shale play. It also provides us another opportunity to work alongside Rex Energy, with whom we have developed a solid working relationship and mutual respect." By the end of the first quarter, 2006, Cadence's New Albany Shale leasehold totaled 681,230 gross (374,810 net) acres. In addition to general leasing activities, this specific transaction adds over 9,450 acres (net) to our growing leasehold in this exciting area. Also, drilling activities through March 31st in New Albany Shale areas have totaled 7 horizontal wells (gross).
About Cadence Resources:
Cadence Resources is an independent energy company focused on unconventional natural gas exploration, development and production with its main operations in Michigan Antrim Shale and Indiana New Albany Shale.
Statements regarding the anticipated drilling on the acquired acreage and our plans for the future growth are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that the drilling and acquisition plans described are based on reasonable assumptions, we can give no assurance that they will prove accurate. Important factors that could cause our actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, drilling and operating risks, the availability of drilling rigs, changes in laws or government regulations, unforeseen engineering and mechanical or technological difficulties in drilling the wells, operating hazards, weather-related delays, the loss of existing credit facilities, availability of capital, and other risks more fully described in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this release, including any forecasts and estimates, are based on management's outlook only as of the date of this release and we undertake no obligation to update or revise these forward-looking statements, whether as a result of subsequent developments or otherwise.