SUN RIVER ENERGY INC.
Sun River Energy, Inc. has entered into a Definitive Agreement to acquire all of
the issued and outstanding shares of Raven Wing Resources, Inc. ("Raven Wing"),
a private company, from Skana Capital Corp.(TSXV:SKN), for $3.5 million in cash
and the assumption of $360 thousand in outstanding liabilities. Raven Wing will
operate as a wholly owned subsidiary of Sun River Energy, Inc. ("Sun River").
The transaction will require an audit of Raven Wing in accordance with SEC Rules
and is subject to receipt of such audit.
With this acquisition, Sun River is gaining intellectual property and associated
oil and gas leases in four Project opportunities in the Sweet Grass Arch,
Montana; Powder River Basin, Wyoming; and Wasatch Plateau, Utah. Sun River
President, Xxx Xxxxxx states, "The Raven Wing acquisition offers a selection of
projects including both oil and gas, at shallow to medium depths, with balanced
risk profiles. Several of the drillable opportunities in the Raven Wing
portfolio are step-outs and infill from existing production. We should be able
to commence drilling on several locations within 6 months of closing this
transaction."
The first project Sun River intends to develop will be in an underdeveloped
shallow oil opportunity on the Sweet Grass Arch in Montana.
Net Acres: ~4,200
Maximum Well Depth: 2,500 ft. (Vertical)
Completed Well Cost: $300,000
Possible Net Xxxxx: 210 (if fully developed on 20 acre spacing)
A second Raven Wing project Sun River can develop in tandem is an intermediate
depth oil opportunity in the Powder River Basin, Wyoming.
Net Acres: ~1,900
Maximum Well Depth: 8,500 ft. (Vertical)
Completed Well Cost: $1,000,000
Possible Net Xxxxx: 24 (if fully developed on 80 acre spacing)
The third Raven Wing opportunity is located on the Wasatch Plateau, Utah, and
will target several layered potential gas reservoirs.
Net Acres: ~36,000
Maximum Well Depth: 6,000 ft (Vertical)
Completed Well Cost: $500,000 - $1.5 million (depth and completion
dependent)
Possible Net Xxxxx: up to 300
The fourth Raven Wing opportunity involves only intellectual property to a field
infill and extension concept in the Powder River Basin, Wyoming. Raven Wing does
not currently hold a land position in this opportunity and Sun River will need
to establish one to proceed with this project.
The transaction is subject to Sun River Energy, Inc. arranging acceptable
project financing, which it expects to do through its investment banker, Europa
Securities, although no financing has been committed. Sun River management
believes this transaction is a significant value acquisition because it provides
the positive features of: 1) very low dilution to existing shareholders, 2)
ready to drill, low risk, fully evaluated projects in the Rockies, and 3) the
potential to develop oil production quickly.
"Sun River has assembled a very experienced team of oil executives, geologists
and an acquisition group that have laid the groundwork to build a mid-size E&P
oil and gas company in the Rocky Mountains and the continental U.S. in 2010,"
Xx. Xxxxxx observes. "With the Raven Wing acquisition and our Colfax County, New
Mexico Project, we are positioned favorably for rapid growth."
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined
in Xxxxxxx 00X xx xxx Xxxxxx Xxxxxx Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Statements in this press release which are
not purely historical are forward-looking statements and include any statements
regarding beliefs, plans, expectations or intentions regarding the future. Such
forward-looking statements include, among other things, the development, costs
and results of our exploration program at our energy properties and any
anticipated future production. Actual results could differ from those projected
in any forward-looking statements due to numerous factors. Such factors include,
among others, the inherent uncertainties associated with petroleum exploration
and development stage exploration companies. These forward-looking statements
are made as of the date of this news release, and we assume no obligation to
update the forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions
contained in this press release are reasonable, there can be no assurance that
such beliefs, plans, expectations or intentions will prove to be accurate.
