CALGARY, ALBERTA--(Marketwire - Dec 10, 2012) - Relentless Resources Ltd. (TSX VENTURE:RRL) ("Relentless" or "the Company") announces it has entered into a farmout agreement in respect of certain Loverna lands in south-west Saskatchewan, to an active industry operator (the "Operator"). Under the terms of the farmout, the Operator has agreed to participate in the drilling of two (2) Viking horizontal wells on a 70/30 basis with the Company. Upon completion of the drilling of the two wells, the Operator will have earned a 49% working interest in the wells (and spacing units), a 49% working interest in the undrilled spacing units in one section and will receive an option to drill a third well to earn additional lands. Relentless'' 30% participation under the farmout will allow it to retain a 51% working interest in the lands. The Company expects these two wells to be drilled and completed in the first quarter of 2013.
Relentless also intends to proceed with a non-brokered private placement of up to 2,400,000 common shares, issued on a "flow-through" basis, at a price of $0.25 per share for gross proceeds of up to $600,000. The flow-through funds raised from the private placement are expected to be used in participating in the drilling and completion of the two (2) farmout wells, which will constitute Canadian exploration expenses (as defined under the Income Tax Act (Canada)) and will be renounced for the 2012 taxation year.
In connection with the private placement, the Company may pay cash finder''s fees equal to 8% on all or part of the gross proceeds raised, and finder''s warrants equal to 3% of all or part of the number of common shares issued, each such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.25 for a period of twelve (12) months from the issue date, subject to the approval of the TSX Venture Exchange (the "Exchange").
All securities issued under the private placement will be subject to hold period of four-months and one day from the date of issuance in accordance with applicable securities laws. The private placement is expected to be completed on or prior to December 31, 2012, and is subject to certain customary conditions and regulatory approvals, including the approval of the Exchange.
About Relentless Resources Ltd.
Relentless is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta and Saskatchewan. Relentless''s common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless'' primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.
This Press Release contains certain forward-looking information and statements with the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "confident", "might", "proposed" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this Press Release contains forward-looking information and statements pertaining to the completion of the private placement of securities, the farmout agreement and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results or performance. Relentless'' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so what benefits Relentless will derive there from. Relentless disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws.
The securities proposed to be issued have not been registered under the U.S. Securities Act of 1933 as amended or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This Press Release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.