RED DEER, ALBERTA--(Marketwire - Dec. 15, 2011) - At the request of the TSX Venture Exchange, Parkland Energy Services Inc. ("Parkland" or the "Corporation") (TSX VENTURE:PKE) is providing an update on certain prior announcements as follows:
Further to the Press Releases filed on May 21, 2010, and August 3, 2010, Parkland announces that the Company will not proceed with the proposed purchase of the 25% membership interest in Omega Petroleum LLC ("Omega"), as well as a 15% working interest in the first four wells (the "Foley Prospect") related to the participation agreement and joint operating agreement with Omega.
The Corporation advanced $100,000 USD on May 21, 2010 to Omega as a deposit towards the 15% working interest in the Pfeiffer 2-13 #1 well in the Foley Play (located in the Miocene Gas Prospect). This well was the first of four to be drilled by Omega which the Corporation would have 15% working interest in; however upon drilling the well in June 2010 it was found to contain no producible zones. The well was abandoned and put on indefinite hold until further geological investigations were completed. As of December 31, 2010 management determined that the activities of the Foley Prospect would not be proceeding according to management's expectations therefore the Corporation would not proceed with finalizing the purchase of the 15% working interest on the four wells. Any attempts to recover the $100,000 USD were unsuccessful and at the 2010 year end the deposit was written off as a loss on investment.
The 25% membership interest in Omega Petroleum LLC was also advanced $100,000 USD in May 2010 and was deemed by management not to be meeting the expectations after the first well was drilled since all activities in that area were put on hold by Omega until further notice. As of December 31, 2010 the Corporation ended all intentions to proceed with the purchase of the 25% membership interest in Omega Petroleum LLC. The deposit was also written off at year end as a loss on investment.
Further to the Press Releases filed on December 14, 2010, the Corporation announces that the proposed financing agreement was not completed. The Corporation's management determined on February 4, 2011 that the need for further funds raised through issuing debentures was not required therefore the proposed financing was not pursued any further.
Further to the Press Releases filed on February 22, 2011, the Corporation announces that the 10% working interest in Amos 36-3 was sold for $1,200,000 USD and payment was received in full on February 28, 2011. Parkland invested in and signed a Joint Operating Agreement dated September 30, 2010 by paying $323,852 CAD in drilling costs. The working interest in the well was sold in an arm's length transaction to a party called Baxterville LLC of Naples, Florida on February 1, 2011.
Parkland is a company based in Red Deer, Alberta that specializes in the manufacturing of separator packages, metering skids, production tanks and pressure vessels, and the provision of sandblasting and painting, coating, welding and fabrication services. And through its wholly owned subsidiary Ace Oilfield Construction Ltd. provides lease site construction and reclamation, as well as, small inch pipeline construction and facility work. The company's common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of hydrocarbon reserves and resources, the realization of reserve and resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of drilling and development operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of hydrocarbon resources; production or recovery rates; accidents, Labor disputes and other risks of the oil and gas industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward looking statements.The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.