Striker Exploration Corp. Announces Belly River Acquisition

Striker Exploration Corp. (“Striker” or the “Company”) (TSX VENTURE:SKX) is pleased to announce that it has entered into a purchase and sale agreement with an arm’s length public oil and gas company for the acquisition of an asset in the Wilson Creek area for $3.875 million cash, before adjustments (the “Acquisition”). The Acquisition is expected to close on or about June 16, 2015 with an effective date of April 1, 2015.

The Acquisition is consistent with Striker’s objectives of focusing on shallow light oil prospects, increasing its horizontal location inventory, and enhancing positions in Company operated core areas.

The Acquisition exposes Striker to a Belly River oil focused, extensive and highly prospective land base offsetting existing acreage. The Acquisition has considerable upside and expands the Company’s Belly River drilling inventory within the context of current market conditions.

The key attributes of the Acquisition include:

  • 38 gross (25 net) sections of land including 15 gross (14 net) freehold sections;
  • 13 gross (9 net) development/delineation Belly River horizontal light oil locations of which 5 gross (5 net) are on freehold acreage; and
  • Potential for an extensive increase to horizontal drilling location inventory with development success.
Purchase price – cash (millions) $3.88
2015 average daily production estimate (boe/d) 145 70 % liquids
Proved producing reserves (Mboe) (1) 228 75 % liquids
Proved producing (millions) (1)(2) $2.65
Proved plus probable producing reserves (Mboe) (1) 300 74 % liquids
Proved plus probable producing (millions) (1)(2) $3.54
2015 cash flow estimate (millions) $0.75
2015 average production estimate (/boe/d) $26,724
Proved producing reserves (/boe) $17.00
Proved plus probable producing reserves (/boe) $12.92
2015 cash flow estimate/purchase price 5.2x
  1. The highlights and reserves summary sets forth the Acquisition’s gross reserves as at March 31, 2015 as evaluated in an independent report prepared by GLJ Petroleum Consultants Ltd. (“GLJ”) dated May 8, 2015 (the “GLJ Report”). The figures in the table have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in NI 51-101.
  2. Before tax net present value based on a 10 percent discount rate from the GLJ Report using April 1, 2015 forecast prices.

The Acquisition includes Belly River vertical wells producing or completed in both channel and basal Belly River sands. Management believes these wells provide invaluable data points in supporting horizontal development.

Upon closing the Acquisition, Striker will control 138 gross (94 net) sections of Belly River acreage, of which management currently considers approximately 1/3 prospective for Belly River horizontal oil development. On this prospective acreage, 33 gross (30.5 net) Belly River horizontal oil locations have been technically evaluated with only 3 gross (3 net) booked in the Company’s 2014 year end reserve report. Corporately, and including the Acquisition, the split between Crown and Freehold on a gross acreage basis is 72% to 28%, respectively (60% / 40% net).

The Company is funding the Acquisition with its credit facility and internal sources. Net debt after the completion of the Acquisition is anticipated to be approximately $9 million.

Dundee Securities Ltd. acted as sole financial advisor to the Company with respect to the Acquisition.

The Company remains focused in its efforts to identify, capture and execute on additional opportunities, including those within its Belly River core region.


Striker, formerly Elkwater Resources Ltd., is a growth-oriented, light oil focused company operating predominantly in Alberta. Striker’s full-cycle business plan provides an excellent opportunity to position itself as a high-growth junior E&P company. With an experienced management team and a strong committed Board, growth is expected to occur through timely strategic acquisitions and drilling. Striker currently trades on the TSX Venture Exchange under ticker “SKX”.


Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning timing and completion of the Acquisition, drilling locations, characteristics of the Acquisition, prospective data related to the Acquisition, net debt of the Company and the Company’s intention to identify, capture and execute on additional opportunities. Statements relating to “reserves” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Striker, including expectations and assumptions concerning the success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Striker’s properties, the successful application of drilling, completion and seismic technology, prevailing weather and break-up conditions, commodity prices, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and our ability to acquire additional assets.

Although Striker believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Striker can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Striker’s Annual Information Form for the year ended December 31, 2014.

The forward-looking information contained in this press release is made as of the date hereof and Striker undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

Boe Disclosure. The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Non-IFRS Measures. This press release contains the term “net debt”, which does not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable with the calculation of similar measures by other companies. Management believes “net debt” is a useful supplemental measure of the total amount of current and long-term debt of the Company. Additional information relating to non-IFRS measures can be found in the Company’s most recent management’s discussion and analysis MD&A, which may be accessed through the SEDAR website (

Production Rates. Any references in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.

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