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Investor
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News Releases
| | January 28, 2010
OIL PRODUCTION FROM APPLICATION OF EEOR TECHNOLOGY ACHIEVED AT WILKIE HEAVY OIL PROJECT
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| | January 28, 2010 - Vancouver, BC - Deloro Resources Ltd. ("Deloro" or the "Company") (TSXV: DLL) is pleased to provide an update on operations at its Wilkie Heavy Oil Project.
Building on the positive oil sample test results reported on October 15, 2009 which confirmed an improvement in API gravity and reduction of crude viscosity by approximately 50%, the Company is pleased to announce that initial observed flow rates of 19-25 barrels of oil per day from the test well were recorded. The Company will continue to work on this well and gather data for future reference while moving ahead to develop the field.
With the successful achievement of the above key performance milestones of the Phase I program, Electro-Petroleum Inc. has earned a 10% working interest in the Wilkie heavy oil property as agreed and announced on March 31, 2008.
The Company will now commence work on the next phase of its development program. The Phase II program will consist of the drilling of a new well adjacent to the existing horizontal well that will be positioned as such to optimize extraction and utilize the existing infrastructure on location (Tanks, pumps, anode bed, etc.). EPI will bear 50% of the costs incurred in connection with the second well and will receive 50% of the proceeds of the second well's output until payout, after which Deloro and EPI's interests will revert to 90- and 10- percent respectively.
The joint venture will also lay out a strategy to continue development of the project by identifiying up to 12 additional well locations which will target prospective areas of the McLaren zone utilizing EPI's EEOR technology.
The Company also wishes to announce that it has arranged, subject to regulatory approval, a non-brokered private placement consisting of up to 3,000,000 Units to qualified investors for gross proceeds of $600,000 at a subscription price of $0.20 per Unit (the "Offering"). A finders fee will be paid in connection with the Offering.
Each Unit is comprised of one common share (a "Share") and one half share purchase warrant (a "Warrant") of the Company. Each full Warrant entitles the holder to purchase one additional Share of the Company (a "Warrant Share") at an exercise price of $0.30 per Warrant Share for a period of one year from the date of issue.
All Shares issued pursuant to the Placement and any Warrant Shares issued in connection with the exercise of any of the Warrants, if any, will be subject to a four month hold period, in accordance with the policies of the TSX Venture Exchange and applicable securities laws.
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Proceeds of the offering will be used to advance development of the Company's business and for general working capital.
EEOR - Electrically Enhanced Oil Recovery TM, a patented technology from Electro-Petroleum, Inc. ("EPI") sets a new standard for heavy oil recovery, requiring no water and less power to apply than other thermal-assist systems. The process enables low-cost recovery of stranded oil reserves by applying electric currents to hydrocarbons in the ground which upgrades and mobilizes heavy oils that are too viscous to be extracted by conventional pumping techniques. EEOR is dramatically more environmentally friendly than alternative heavy oil extraction techniques (such as steam injection) -- Deloro and EPI are proud to point out that the EEOR process does not produce any greenhouse gases on site and does not utilize outside water for conversion to steam or injection.
Deloro's 90-percent-owned Wilkie project is located eight miles south of Wilkie, Sask. and consists of approximately 3,765 leased acres of petroleum and natural gas rights covering a channel in the McLaren zone that measures approximately one-half to three-quarters of a mile wide and approximately five miles long. The zone is at a depth of 2,035 feet, with five vertical wells and one horizontal well drilled into the structure, defining a heavy oil pay zone with gross sand thickness of 30 to 50 feet.
Reliance Engineering Group Ltd. recently completed an independent report in which estimates of discovered resources were performed in accordance with National Instrument 51-101 guidelines and generally accepted industry standards. The discovered resources were calculated based on McLaren sand net pay Isopach maps and the average reservoir parameters. The original discovered resources underneath company land were calculated to be approximately 63.1 million stock tank barrels.
Mike Magrum, PEng, a qualified person under National Instrument 51-101, has approved the technical content of this news release.
Shareholders and other interested parties are invited to visit the Company Web Site at www.deloro.ca for additional information.
Louis P. Lees
President and CEO
Direct: 360-371-2820
Vancouver Office: 604-484-5761
Mark Tommasi 1-877-454-0383
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
We seek safe harbor. |
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| | You can view the Next News Releases item: Wed Mar 24, 2010, Deloro Announces Private Placement to Fund New Well and Field Expansion
You can view the Previous News Releases item: Thu Oct 15, 2009, Heavy Oil Extraction Technology Proven Successful
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