Tickers: XTSX:AURX
Tags: Mining
February 20, 2019 / TheNewswire / Saskatoon, Saskatchewan - Aurex Energy Corp. ("AURX" or the "Company" - TSXV:AURX) announces that it has completed the acquisition of a privately-held US company (the "Subsidiary") with substantial natural gas reserves in the Barnett Shale, Texas. AURX has acquired all of the capital stock of the US company in consideration of AURX's issuance of 12,705,000 shares of its common stock to the shareholders of the Subsidiary. The acquisition is an arm's-length transaction and has received conditional acceptance from the TSX Venture Exchange.
The Subsidary's primary property consists of 10 shut-in natural gas wells (8 horizontal wells and 2 vertical wells) on 1,400 acres located in the Fort Worth Basin. The Company intends to re-work and re-fracture the shut-in wells with the goal of generating significant cashflows to expand and develop an asset base of both producing oil and gas and mineral properties. Total Proved Plus Probable Reserves are 24.6 Billion Cubic Feet ("BCF") of natural gas. The estimated Net Present Value ("NPV") of the net revenue (after all operating costs, royalties and taxes) from the Proved Plus Probable Reserves, using forecast pricing, is US$22.0 million. Peak operating cash-flow (before income taxes), after reworking all wells, is estimated at US$10.8 million per year. Estimated reserves and economic valuations are from a NI51-101-compliant report prepared by a Qualified Reserves Evaluator ("QRE"), MKM Engineering, dated December 28, 2018 and effective Jan 1, 2019.
Gary Billingsley, President, comments "We are pleased to have finally completed this acquisition and look forward to advancing both the natural gas and mineral projects as a restructured company under a new corporate banner. Our goal is to focus on developing a diversified portfolio of resource assets geared to meeting the demands of current and future energy producers. This means developing natural gas resources to meet the demand for products like Liquefied Natural Gas ("LNG")" and developing mineral resources like copper, zinc and cobalt to meet the demand for metals critical to "green" technologies and the move to electrification. Building a solid base of natural gas assets means generating internal cash-flow reducing the reliance on equity funding moving forward, and helping support mineral project development."
About Aurex Energy Corp.
Aurex Energy Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. AURX is focused on the acquisition and development of a diversified portfolio of resource properties critical to current and future energy production. This includes natural gas for LNG, base metals including copper and zinc, platinum group elements, strategic metals including cobalt, and precious metals.
AUREX ENERGY CORP. TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL "AURX".
For more information, including news releases and technical reports providing more detail on the contents of this news release, please visit our website at www.aurexenergy.ca
For further information:
Aurex Energy Corp.
Gary Billingsley, President
Phone: 306-242-7363
Facsimile: 306-992-0729
To receive information by e-mail, visit www.aurexenergy.ca and click "Contact".
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.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this release and except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release may contain statements within the meaning of safe harbour provisions as defined under United States Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of the management of Canadian Platinum and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.
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