Signature Resources Ltd. press release
Ripper Oil and Gas Inc.
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TSX VENTURE STOCK SYMBOL: RIP
CALGARY, June 14 /CNW/ - RIPPER OIL AND GAS INC. ("RIP") announces that it has executed a letter of intent on June 14, 2007 to acquire all of the issued and outstanding shares of a private junior oil and gas company. The company has high working interest operated assets in Alberta with current production capability of approximately 135 boe/day. Ripper has agreed to pay cash of $3,600,000, adjusted for debt, and to issue approximately 4,350,903 shares for all the issued and outstanding shares of the company. The company's proved plus probable reserves as at May 1, 2007 as prepared by GLJ Petroleum Consultants were 800 thousand barrels of oil equivalent while net present value of these reserves using forecast pricing, discounted at 10% was $9,826,000. The transaction is an arm's length transaction subject to execution of binding agreements and completion of customary due diligence.
Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has in no way passed on the merits of the
proposed transaction and has neither approved nor disapproved of the
information contained herein.
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