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Published in Stocks and Investing on Tuesday, June 1st 2010 at 13:50 GMT by Market Wire
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2010) - MAX Minerals Ltd. ("MAX") (TSX VENTURE:MJM) is pleased to announce that it has entered into an agreement to complete the strategic acquisition of Varenna Energy Ltd. ("Varenna") located in Calgary, Alberta. Varenna is an oil and gas exploration company whose primary objective has been to explore for Sawtooth oil on lands situated in Southern Alberta. In consideration of the sale, MAX agrees to issue 11,331,750 of its common shares to the shareholders of Varenna in exchange for all issued and outstanding shares of Varenna. The acquisition is expected to close in mid-June and is subject to acceptance by the TSX Venture Exchange. Following the acquisition, MAX is expected to have approximately $5.8 million of working capital to be used to develop the Company's properties and pursue new opportunities.
Key highlights of the acquisition are as follows:
- A 51-101 compliant independent reserve of approximately 235,000 boe of proven plus probable reserves
- Over 12,000 acres of undeveloped land
- Immediate low-risk drilling locations identified related to the already discovered pools
- High working interest and operator on all of the properties
- Tax pools of approximately $2.2 million
- Opportunity to put certain oil and gas wells into production, which would provide MAX with sources of positive cash flow
Based on the approximate total consideration and after adjusting for estimated undeveloped land value of $400,000, the proven plus probable reserve value is approximately $18.72 per boe.
The agreement also provides for the appointment of the following three new directors to MAX's board: Stan Grad, Ray Antony and Ron Wiebe.
Stan Grad is currently President of Soderglen Ranches Ltd. Mr. Grad was the founder, President and Chief Executive Officer of Grad & Walker Energy Corporation, a TSX listed company. Mr. Grad recently served as Chairman of Standard Energy Inc. Currently Mr. Grad serves as a Director for various oil and gas companies including Birch Lake Capital Inc., Eaglewood Energy Inc. and Canyon Services Group Inc.
Ray Antony is an independent businessman who has held the position of President for a number of private oil and gas companies. Mr. Antony currently serves as a Director of Blackhawk Resource Corp., Birch Lake Capital Inc., Gran Tierra Energy Inc., Eaglewood Energy Inc., Canyon Services Group Inc., and Paramax Resources Ltd.
Ron Wiebe was President and Chief Executive Officer of Standard Energy Inc. before selling Standard to Bellamont Exploration Ltd. in February, 2010 for over $50 million of enterprise value. Prior to Standard Energy Inc., Mr. Wiebe served as Vice-President of Resolution Resources Ltd.
MAX Minerals Ltd.
Andriyko Herchak, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
