Nextraction plans to drill in Whitley County, KentuckyJune 8, 2009
Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction"), has entered into a contract to drill a wireline core analyzing the potential gas resource of the Chattanooga shale formation on recently acquired property in southeastern Kentucky. Nextraction plans to spend $120,000 for the coring of 75-120 feet of the Chattanooga shale formation, which is a Devonian Age black shale located in the Appalachian Basin of the eastern United States. Nextraction has also entered into an agreement with TerraTek, a Salt Lake City, Utah based oil and gas research and development specialist, to evaluate the coring data for commercial potential.
The core will be the first well pursuant to the terms of Farmout and Joint Venture Agreement (Press Release dated March 26, 2009) with Vinland Energy Eastern, LLC ("Vinland"). In the event the analytical data from the core is positive, the Company will plan to drill four additional wells to complete its drilling program for 2009.
Nextraction has also entered into a Farmout Agreement with Trust Energy Company, LLC ("Trust"), a wholly owned subsidiary of Vanguard Natural Resources, LLC (NYSE:VNR). Trust is a joint venture partner with Vinland in the Project Area and owns partial interest in approximately 13,000 acres inclusive of the 70,130 acre Farmout and Joint Venture Agreement Nextraction has with Vinland. The Farmout Agreement provides for Nextracton to core one test well prior to July 1, 2009 and drill four (4) wells on Trust leasehold interests prior to February 28, 2011. Under terms of the agreement, Trust will have an option to participate as a twenty five percent working interest in the four wells after payout, on a well by well basis.
Nextraction has also acquired a new 165 acre property lease and an assignment of wellbore interest from MTARRI, Inc. (MTARRI) in Whitley County, Kentucky. MTARRI is a private wholly-owned Company of Dr. Paul D. Trost. Dr. Trost is a director of the Company and has agreed for MTARRI to convey its fifty percent ownership in the proposed core well for $1.00. The interest being conveyed does not have a market value, and the assignment is a third party arm's length transaction.
Nextraction Energy Corporation is a Canadian junior oil and gas company which changed its business to the oil and gas industry in November 2008. The Company is located in Vancouver, BC, Canada and in addition to the Eastern Kentucky Project described above, has assets in the Pinedale area of western Wyoming, where it plans to carry out drilling operations in 2009.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
FORWARD LOOKING STATEMENTS DISCLAIMER
Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, statements or information about the anticipated benefits resulting from the Farmout and Joint Venture Agreement, our business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the accuracy of recovery rates and production in surrounding areas. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
Although we have attempted to identify factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. As actual results and future events could differ materially from those anticipated in such statements and information, readers should not place undue reliance on forward-looking statements or information. The forward-looking statements and information contained in this press release are made as of the date of this press release and, except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. All forward-looking statements and information made herein are qualified by this cautionary statement. Interested parties are invited to have an independent review of the projections contained herein for concurrence and accuracy.
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For further information on behalf of Nextraction Energy Corp, please contact:
Mark S. Dolar, President and CEO
Phone: (604) 488-3633
Cell: (801) 502-5085