Source Petroleum Acquires 10 Townships - 230,000 Acres of Oilshale Permits - Pasquilla Hills, Saskatchewan
Tuesday April 10, 6:30 am ET
CALGARY, Alberta, April 10 /PRNewswire-FirstCall/ -- Source Petroleum Inc. (OTC Bulletin Board: SOPO - News; "Source Petroleum" or "Company") is pleased to announce it has been awarded by Saskatchewan Industry and Resources, 3 permits totaling 360 sections of oil shale rights in the Pasquilla Hills oil shale region near Hudson Bay, Saskatchewan.
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Three Townships [108 sections] of the oil shale permits lie 2.5 miles southeast from Canwest Petroleum (now Oilsands Quest) oil shale project in Pasquilla Hills, which has assayed results at an average yield of 7 gallons/ ton from an average pay thickness of 148 feet. Canwest Petroleum's property has a suggested reserve potential in the range of 2.4 billion barrels from a three township block.
Seven Townships [252 sections] lie approximately 9 miles northwest of the Canwest Petroleum's (Oilsands Quest) oil shale project and directly adjacent and west of the Outrider Energy oil shale permit in Pasquilla Hills.
The Company believes that these lands show excellent characteristics and were assayed by Sun Oil in 1965 over an 11 township area, and yielded a range of 7.3 - 11.73 gallons/ton from a thickness of 45-152 feet. The oil shales are found in black mudstones of the First White Speckled Shale of the Late Cretaceous period. These beds dip gently to the west and are some of the richest grade of oil shales known, producing many seeps through the area, and gas and free oil when drilled through by a rotary bit from a drilling rig.
Under the agreement between Propel Energy Corp. and Source Petroleum, Propel Energy will receive a carried 15% interest until feasibility with an option to increase an additional 10% at that stage by covering 10% of the backcosts.
Propel Energy Corp is a private Alberta Oil and Gas company with large exploration assets in Saskatchewan, furthermore, Propel's team adds tremendous technical expertise to the project going forward.
Source is extremely pleased in becoming one of the larger heavy oil participants in the Saskatchewan heavy oil play fairway and looks forward to launching an aggressive work program on the assets.
Except for the historical and present factual information contained herein, the matters set forth in this release include statements of management's current expectations. Statements identified by words such as "expects," "projects," "plans," "believes," "estimates," "may" and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, include the statement that "Canwest Petroleum's property has a suggested reserve potential in the range of 2.4 billion barrels from a three township block", that "we believe the lands covered by our exploration permits in Saskatchewan show excellent prospect potential", and that "the beds under these properties dip gently to the west and are some of the richest grade of oil shales known, producing many seeps through the area, and gas and free oil when drilled through by a rotary bit from a drilling rig" are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the historical data may be inaccurate or misinterpreted, the anticipated benefits from our operations cannot be fully realized, the possibility that commodity prices, costs or difficulties related to the conduct of its business will be greater or lesser than expected, and the impact of competition and other risk factors relating to our industry will be greater than expected, all as detailed from time to time in the company's reports filed with the SEC. The company disclaims any responsibility to update these forward-looking statements.
