Contact Information: Contact: Wayne Hall Chief Executive Officer (713) 968-9282 Don Kirkendall President (713) 968-9290
Petro Resources Closes Williston Basin Acquisition and Related $75 Million Credit Facility
| Source: Petro Resources Corporation
HOUSTON, TX -- (MARKET WIRE) -- February 20, 2007 -- Petro Resources Corporation (the "Company")
(AMEX : PRC ) announced today that it has successfully closed its previously
announced Williston Basin Acquisition (the "Acquisition"). As partial
consideration for the Acquisition, the Company paid cash consideration of
$10,000,000 and issued 3,144,655 shares of common stock which are subject
to the Securities and Exchange Commission Section 144 restrictions. In
connection with the Acquisition, the Company secured a $75 million credit
facility arranged by Petrobridge Investment Management, LLC. Initial
advances under the credit facility were used to partially fund the purchase
consideration of the Acquisition, and to fund related developmental capital
expenditures associated with the properties. Future advances under the
credit facility for acquisitions and development capital are subject to the
approval of the lender.
The Acquisition consists of an approximately 43% working interest in 15
producing oil fields located in the Williston Basin of North Dakota. The
Acquisition includes approximately 15,000 acres and approximately 150
wells. The acquired fields are all possible water flood candidates for
enhanced recovery operations and five of the 15 fields are currently in
various stages of water flood development. The current production is
approximately 260 barrels of oil per day net to the Company's interest with
incremental production anticipated from current drilling operations. Based
on engineering studies by Cawley, Gillespie & Associates, Inc. and analog
data of other such water flood projects in the Williston Basin, the
Acquisition could add as much as 10.4 million barrels of additional oil
reserves net to the Company's interest.
In addition to the acquisition of a working interest in the producing
properties, the transaction also provides for a joint venture involving
other exploration and water flood opportunities identified within the
region.
Merrill Lynch acted as financial advisor and placement agent to the
Company. UCX Western LLC, a privately owned company located in Denver,
Colorado, was engaged to facilitate the transaction on behalf of the
Company.
For additional information, please view our website at
www.petroresourcescorp.com.
About Petro Resources Corporation
Petro Resources Corporation is an independent exploration and production
company focused on domestic lease acquisitions, exploration, and oil and
gas production.
Forward-Looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various properties; (2)
the expected production and revenue from the Williston properties; and (3)
estimates regarding the increase in reserve potential of the Williston
property. These statements are qualified by important factors that could
cause the Company's actual results to differ materially from those
reflected by the forward-looking statements. Such factors include but are
not limited to: (1) the Company's ability to finance the continued
exploration and drilling operations on its various properties, including
the Williston properties; (2) positive confirmation of the reserves,
production and operating expenses associated with its various properties,
including the Williston properties; and (3) the general risks associated
with oil and gas exploration and development, including those risks and
factors described from time to time in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including, but not limited to the Company's Pre-Effective Amendment No. 2
to its Registration Statement on Form SB-2 Form filed with the SEC on July
14, 2006. The Company cautions readers not to place undue reliance on any
forward-looking statements. The Company does not undertake, and
specifically disclaims any obligation, to update or revise such statements
to reflect new circumstances or unanticipated events as they occur.