TORONTO, June 16, 2014 /CNW/ - Sprott Resource Corp. ("SRC" or the "Company") (TSX: SCP) announced today that it has invested $19.5 million in InPlay Oil Corp. ("InPlay"), a private exploration and development company based in Calgary, Alberta.
"The InPlay executive team, led by Doug Bartole, has started to acquire high-quality, light oil growth assets in Alberta," said Steve Yuzpe, President and CEO of SRC. "We believe that InPlay has the management and technical skills necessary to build a large, low decline, liquids-focused asset base by identifying, exploring, and developing these opportunities in attractive areas."
"We are pleased to be investing alongside management, company directors and other significant private equity investors, providing us with strong partners to support the future growth of the business," added Mr. Yuzpe. "We are committed to expanding our presence in Calgary and continue to actively source new accretive investment and partnership opportunities in Canada's leading energy market."
"We are pleased to have the support of SRC as a principal shareholder along with our current strong capital partners which include JOG Capital and other global funds. These shareholders have provided significant funding which gives InPlay strong financial flexibility and will be a key factor in allowing InPlay to achieve its business goals and strategy," said Doug Bartole, CEO of InPlay.
InPlay's management team is led by Doug Bartole, the founder and former CEO of Vero Energy Inc., Kevin Yakiwchuk, fellow co-founder and former VP Exploration of Vero Energy Inc., Gordon Reese, the founder and former CEO of Invicta Energy Ltd., Thane Jensen, former Senior VP Operations at Penn West Exploration Ltd., and Darren Dittmer, former CFO of Barrick Energy Inc.
About Sprott Resource Corp.
Sprott Resource Corp. (TSX: SCP) is a resource-focused private equity investor managed by one of Canada's leading teams of resource private equity specialists. The company currently has investments in oil and gas, mining, agriculture and agricultural nutrients. SRC takes an active involvement in the companies in which it invests. Management is dedicated to generating consistently superior returns on capital for its shareholders, while focusing on risk management and real wealth preservation. To learn more about InPlay or SRC's other portfolio holdings, please visit www.sprottresource.com.
About InPlay Oil Corp.
InPlay is a private crude oil and liquids focused exploration, development and production company headquartered in Calgary, Alberta, Canada.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements (collectively referred to herein as "Forward-Looking Statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this news release contains Forward-Looking Statements pertaining to: (i) the future growth and development of InPlay; and (ii) the expansion of SRC's presence in the Calgary market. Forward-Looking Statements are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to: (i) energy markets and the price of oil, natural gas liquids and natural gas will be consistent with the current environment; (ii) the impact of increasing competition in each business in which the Company's subsidiaries operate will not materially change; (iii) conditions in general economic and financial markets will be consistent with the current environment; (iv) the effects of regulation and tax laws of governmental agencies will not materially change; and (v) future operating costs will be consistent with the current environment. Although SRC believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because SRC can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation, (i) market volatility that would affect the ability to enter or exit investments; (ii) adverse market conditions; (iii) risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses, and health, safety and environmental risks); (iv) those risks listed under the heading "Risk Factors" in SRC's annual information form dated March 25, 2014; and (v) other risks, which are beyond the control of SRC or its subsidiaries. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this news release. The Forward-Looking Statements contained in this news release speak only as of the date of this news release, and SRC does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE Sprott Resource Corp.For further information:
Director of Communications
Sprott Resource Corp.
T: (416) 943-4394
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