Friday, April 25, 2014

Gear Energy Ltd. - GXE.t

Gear Energy Ltd. - GXE.t operates the heavy oil producing areas of Wildmere, Blackfoot and Vermillion.

Heavy oil production in the Maidstone area of Saskatchewan began in 2013

On April 24, 2014 the company released News

" Gear Energy Ltd. ("Gear" or the "Company") (TSX: GXE) is pleased to announce today that it has entered into an agreement to acquire (the "Acquisition") heavy oil assets focused near the Company's core producing areas of Wildmere, Alberta and Maidstone, Saskatchewan (the "Assets").

The Assets include over 2,000 boe per day of high working interest, operated heavy gravity crude oil production (98 percent oil). The purchase price for the Assets is $85 million, payable in cash. The effective date of the Acquisition is March 1, 2014 and the closing of the Acquisition is expected to occur on or about May 1, 2014 (the "Closing").

The Assets fit Gear’s strategy of targeting underexploited, geographically focused production with low risk development locations and simple solutions to increase production value by lowering operating costs. The Assets all produce from heavy oil reservoirs analogous to those that the Gear team have been successfully developing in the area for the past four years.