TORONTO, Jan. 14, 2013 /CNW/ - Sprott Resource Corp. ("SRC" or "The Company") (TSX: SCP) is pleased to announce that its subsidiary One Earth Oil & Gas Inc. ("One Earth Oil & Gas") has entered into a joint venture agreement with Gift Energy Limited ("Gift Energy"), an entity established by the Gift Lake Metis Settlement ("Gift Lake"), to explore and develop Gift Lake lands for heavy oil.
"We are honoured to be moving forward on this project with our partners at Gift Energy and the people of Gift Lake," said Blaine Favel, CEO of One Earth Oil & Gas.
Gift Lake is located in the Peace River region of Northwest Alberta, an area of existing heavy oil production. The Gift Lake lands are situated southeast of major Bluesky oilsands production fields in the Seal and Cliffdale regions currently operated by several established Canadian energy producers.
An Oilsands Lease for 12 sections (3,072 hectares) of land has now been finalized with the Alberta government. As a precursor to further development activity, One Earth Oil & Gas and Gift Energy will undertake an initial 3D seismic and drilling program in the first half of 2013, representing a total investment in the joint venture of up to $15 million by One Earth Oil and Gas. The Gift Bluesky heavy oil project is anticipated to produce under cold flow primary technologies. An option on a further 12 sections is also available to the parties, subject to standard lease and permitting requirements.
"We expect the partnership model that One Earth Oil & Gas and Gift Energy will use to develop this project to be mutually beneficial to both investors and the community of Gift Lake," added Dave Lamouche, Chairman of Gift Lake.
One Earth Oil & Gas was established by SRC in 2009 as a vehicle to realize the potential for economic oil and gas development through partnerships between industry and Canada's Metis and First Nations.
"Through this project, we are pleased to bring a partner like Gift Lake together with the One Earth Oil & Gas management team, which has deep experience in both Western Canadian heavy oil exploration and building businesses with Aboriginal communities," commented Kevin Bambrough, CEO of SRC.
About One Earth Oil & Gas Inc.
One Earth Oil & Gas is a privately held company established by Sprott Resource Corp. and dedicated to pursuing oil and gas exploration and development opportunities in partnership with Metis and First Nations in Canada and the United States. The company has an experienced management team in place with an average of 30 years of experience in the oil and gas sector.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to invest and operate in natural resources. Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. SRC is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting LP (SCLP), of which Sprott Inc. is the sole limited partner. Pursuant to a management services agreement between SCLP and SRC, SCLP provides day-to-day business management for SRC as well as other management and administrative services. SRC invests and operates through Sprott Resource Partnership (SRP), a partnership between SRC and Sprott Resource Consulting Limited Partnership, an affiliate of SCLP which is the managing partner of SRP.
Forward-looking information and statements
This news release contains certain forward-looking information and 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 information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to further development activity with Gift Lake, completion of an initial 3D seismic and drilling program, anticipated production of the Gift Bluesky heavy oil project, leasing of further sections of land and the benefits of the partnership model between One Earth Oil & Gas and Gift Energy. Forward-looking statements or information are based on a number of material factors, expectations or assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although SRC believes the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because SRC can give no assurance that such expectations will prove to be correct. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, 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 information or statements, including, without limitation, the success of the development activity and anticipated production from the project and those listed under the heading "Risk Factors" in SRC's annual information form dated March 27, 2012. 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 release.
The forward-looking information and 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 or information, 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.
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