HOUSTON, TEXAS - October 24, 2012 (www.investorideas.com energy stocks newswire) EFL Overseas Inc. (
OTCBB: EFLO)
("EFLO") is pleased to announce its acquisition of additional rights
and interests in the Liard basin gas field and facilities located in the
Kotaneelee Area, Yukon Territory, Canada (the “Assets”). Effective
October 17, 2012, EFLO acquired a 30.664% interest in the Assets from
Nahanni Energy Inc. and certain of its wholly owned subsidiaries
(“Nahanni”). The Nahanni purchase follows EFLO’s earlier acquisition of
Devon Canada’s interest (generally a working interest of 22.989%, with a
working interest of 69.337% in one gas well) in the Assets. Upon
closing the Nahanni purchase, EFLO became the largest interest holder in
the Kotaneelee with a general interest of 53.67% and a working interest
of 100% in one gas well.
"Our acquisition of the additional interest at Kotaneelee provides
us with a controlling position in this exciting project", stated EFLO
Chairman Henry Aldorf. "Increasing our working interest to 54% allows us
to drive forward development plans and offers our shareholder's a
greater potential upside."
"With the closing of the Nahanni acquisition, we are focused on
actively pursuing additional interests at Kotaneelee and the surrounding
area," added EFLO Chief Executive Keith Macdonald. "The larger asset
base will be helpful as we evaluate our future market opportunities in
the Pacific Rim, North America and the Yukon."
The Assets include 30,188 acres of land, a gas dehydration plant
(capacity: 70 million cubic feet per day ("MMCFD")), one water disposal
well (capacity: 6,000 barrels per day), one well temporarily shut-in for
plant maintenance and two suspended gas wells, flarestack, storage
tanks, airstrip, roads, gathering systems, geological data, equipment,
and other transportation and camp infrastructure.
As consideration for the Assets, EFLO paid Nahanni CAD$400,000
(USD$398,550) in cash, and 1,614,767 shares of one of its subsidiaries,
which are exchangeable on a one-for-one basis for shares of EFLO's
restricted common stock (valued at CAD$4,100,000; USD$4,190,610). In
addition, ELO indemnified Nahanni against its portion of the
abandonment, reclamation and environmental liabilities associated with
the Assets. EFLO intends to undertake an active development and
exploration program, which is expected to defer these potential
liabilities into the future
.
EFLO continues to pursue the acquisition of additional working interests in the Assets.
Forward Looking Statements
This press release includes forward looking statements as
determined by the US Securities and Exchange Commission (the "SEC"). All
statements other than statements of historical fact, included in this
press release that address activities, events, or developments that EFLO
believes or anticipates will or may occur in the future are forward
looking statements. Such forward looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of EFLO to be materially
different from any future results expressed or implied by such
forward-looking statements. Such factors include general economic
conditions, the ability to acquire and develop specific projects, the
ability to fund operations and changes in consumer and business
consumption habits and other factors over which EFLO has little or no
control. EFLO does not intend (and is not obligated) to update publicly
any forward looking statements. The contents of the press release should
be considered in conjunction with the warnings and cautionary
statements contained in the EFLO's recent filings with the SEC. There
can be no assurance that EFLO will be successful in completing
additional Kotaneelee acquisitions.
ON BEHALF OF THE BOARD OF DIRECTORS
Contact:
Keith Macdonald
EFLO Overseas Inc.
1 (403) 246-8443
Published at Investorideas.com energy newswire
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