|
Attention Business Editors
Benchmark Energy Corp. to extend rights to proprietary well performance enhancement technology in Colombia and the region through purchase of
Caribe Oil & Gas Ltd.
<<
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES/
>>
CALGARY, Dec. 11 /CNW/ - Benchmark Energy Corp. ("Benchmark" or the
"Company"), (TSXV: BEE) reports that it has purchased 100% of Caribe Oil & Gas
Ltd. ("Caribe"), a privately-held Alberta corporation, from Dominion Oil USA
Corp. ("Domoil") of Spring, Texas, for nominal cash consideration and the
assumption of certain debts of Caribe totaling C$120,000. Domoil is
wholly-owned by Henk Jelsma, who is a director of Benchmark and the developer
of a proprietary well performance enhancement technology, known as "radial
jetting technology", which the company utilized earlier this year in Colombia
on a pilot project with Ecopetrol SA.
Under a previous agreement with Domoil, Benchmark held the preferential
right to the radial jetting technology for projects in Colombia in which
Benchmark held an interest, for a 2-year period expiring in February 2009. In
connection with the acquisition of Caribe by Benchmark, Domoil has agreed to
assign to Caribe a preferential right to use the radial jetting technology for
projects in which Caribe holds an interest, for an initial 5-year period
ending on November 3, 2013, in Colombia as well as Peru, Ecuador and Trinidad.
Pursuant to the terms of a cooperation agreement between Caribe and
Domoil, Caribe will extend a secured loan of US$350,000 to Domoil so that
Domoil can complete the construction of a trailer-mounted radial jetting unit
which may be utilized by Caribe on a preferential basis. It is intended that
such unit will be utilized in Trinidad if Caribe is successful in securing a
joint venture with Petrotrin. Domoil has the option of repaying the loan
amount to Caribe by providing radial jetting services to Caribe. Furthermore,
Domoil will receive a royalty of 1.5% of Caribe's share of any incremental
production derived in Colombia, Peru, Ecuador or Trinidad through the
application of the radial jetting technology.
Separately, Caribe has been pre-qualified by Petrotrin, the national oil
company of Trinidad & Tobago, to bid on eight (8) onshore oil fields in
Trinidad known as the "Eastern Fields" which are being made available for
possible rehabilitation and redevelopment through joint ventures with
Petrotrin.
"We are very pleased to have been able to extend the Company's rights to
the radial jetting technology for a further 5 years, and to extend this right
to other countries in the region in addition to Colombia. The pilot project
with Ecopetrol in Colombia proved the efficacy of the technology in increasing
fluid production from existing wells, and now we wish to expand upon this
through utilizing the technology to gain interests in petroleum projects in
Colombia and the region," commented David R. Robinson, the President and Chief
Executive Officer of Benchmark. "Benchmark's preferential right to the
technology should open up the Company to numerous opportunities for farm-ins
and acquisitions, in addition to our recently-announced transaction to merge
with Colombia-focused Delavaco Energy Inc."
Benchmark is a development stage junior Canadian oil and gas exploration
company, focused internationally.
READER ADVISORY
Statements in this press release may contain forward-looking information
including expectations with respect to farm-in and acquisition opportunities
and the proposed merger with Delavaco Energy Inc. The reader is cautioned that
assumptions used in the preparation of such information may prove to be
incorrect. Events or circumstances may cause actual results to differ
materially from those predicted, a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of the
Company. These risks include, but are not limited to, the risks associated
with the oil and gas industry, commodity prices, general economic conditions,
conditions in the capital markets in Canada and elsewhere and exchange rate
changes. Industry related risks could include, but are not limited to,
operational risks in exploration, development and production, delays or
changes in plans, risks associated with the uncertainty of reserve estimates,
health and safety risks and the uncertainty of estimates and projections of
production, costs and expenses.
This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction.
<<
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
>>
-30-
/For further information: Benchmark Energy Corp., David R. Robinson,
President & CEO, Phone: (403) 802-0770, Fax: (403) 266-5732, E-Mail:
drr@benchmarkenergy.com/
|
NEWS RELEASES