BIGHORN PETROLEUM LTD., FLYING A PETROLEUM LTD., TENAKA DRILLING CONSORTIUM LTD. AND WYN DEVELOPMENTS INC. PROVIDE AMALGAMATION UPDATE, ANNOUNCE DRILLING AT TRUTCH
Vancouver, British Columbia, Canada - December 21st, 2007 - Wyn Developments Inc. ("Wyn Developments" or the "Company") announces Bighorn Petroleum Ltd. (TSXV: BHP, "Bighorn"), Flying A Petroleum Ltd. (TSXV: FAB, "Flying A"), Tenaka Drilling Consortium Ltd. ("Tenaka") and Wyn Developments Inc. (TSXV: WL, FWB: YXE, OTCBB: WYDPF, "Wyn"), (collectively the "Partners"), continue efforts to complete the amalgamation into Canada Gas Corp. (the "Company") as soon as possible. Recent efforts have concentrated on financing the Company to meet near term commitments, which include both drilling and acquisition. Focus Energy Trust has now drilled the first well of the 2007/2008 winter season, the a-38-A/94-G-15 Triassic Halfway development well at Bougie Trutch. The well is now undergoing testing and completion and upon success, will be tied into production prior to the end of the 2007/2008 winter drill season (Q1 2008).
Wyn Developments Inc. and Flying A Petroleum Ltd. announce that they have each entered into bridge loan agreements with a third party investor for the total loan sum of $200,000, subject to regulatory approval where required. Pursuant to the Wyn bridge loan agreement, the lender agreed to lend a total of $92,000 to Wyn. Wyn has agreed to issue the lender 92,000 of its common shares as a bonus at a deemed price of $0.10 per share, issuable upon receipt of regulatory acceptance of the Wyn bridge loan agreement. Pursuant to the Flying A bridge loan agreement, the lender agreed to lend a total of $108,000 to Flying A. Flying A agreed to issue 108,000 of its common shares to the lender as a bonus at a deemed price of $0.10 per share, issuable upon receipt of regulatory acceptance of the Flying A bridge loan agreement. The Wyn and Flying A loans are repayable upon the earlier of the completion of an equity financing by Canada Gas Corp. (the merged entity) and April 30, 2008. The bridge loans bear interest at 12% per annum.
Discussions are ongoing among the Partners with a number of interested investor groups respecting the form and terms of an equity financing for Canada Gas Corp, however, the Partners will now finalize the share exchange ratios and seek conditional Toronto Venture Exchange acceptance of the transaction. The shareholder information circulars outlining the entire transaction with prospectus level disclosure will be distributed as soon as possible thereafter, ahead of shareholder meetings to be scheduled at least 25 days from mailing. After the meetings, the Partners will require court and final Exchange approval prior to the Company being called to trade.
ABOUT CANADA GAS CORP.
The Partners are currently active in three natural gas projects; the Prophet River, Bougie Trutch, and Trutch East natural gas development projects all located in the Foothills region of the prolific natural gas bearing Western Canadian Sedimentary Basin, northeastern British Columbia, Canada. The Western Canadian Sedimentary Basin is home to many world-class oil and gas fields, and features extensive logistical infrastructure. The combined assets of Canada Gas Corp. will include:
- A combined revenue stream from existing wells in production.
- A 100% interest in the core asset, the 21 square mile Prophet River Project.
- A 100% interest in the recently drilled d-60-E/94-G-15 Prophet River well, which as previously announced, yielded an initial unstabilized gas flow of up to 7.943 MMcf.d. from the Mississippian Horizon and excellent gas detection in the Triassic Halfway Formation. This well has been confirmed a 'new pool discovery' by the British Columbia Oil and Gas Commission.
- A 100% ownership of the Prophet River 3D seismic data.
- A 19.5% to 32.5% gross working interest in the Bougie Trutch and Trutch East lands, including a third party overriding royalty, subject to various terms.
- A 19.5% to 32.5% gross working interest 6 Triassic Halfway Formation wells: Three Triassic Halfway wells producing since February 2007, one well currently shut-in, one suspended, and one currently undergoing testing and completion (a-38-A).
- A 32.5% interest in 14,217 meters of six inch pipeline from the Tommy Lake field to Trutch East and Bougie Trutch lands.
- Milestone third party bonuses and stock payments from third parties for successful tie-in on the Trutch East lands.
- A combination of approximately $37 million in gross tax pools, plus government royalty and exploration credits.
- A British Columbia Oil and Gas Commission issued Operator's license.
Mr. Thomas W. Bainbridge P.Geol., is the qualified consultant for the Company's natural gas projects and has reviewed and verified the contents of this news release.
Mr. A.J. Shah, P.Eng, of Reliance Engineering Group Ltd. has prepared these reserves evaluations in compliance with national instrument 51-101 policy.
About Canada Rare Earths
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements at its 100% owned Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America. Worldwide, carbonatite-related deposits are a major host for rare earths elements ("REE"). The world's most advanced and prolific REE deposits in production or development, Bayan Obo (China), Molycorp's Mountain Pass (USA), Lynas's Mount Weld (Aus), and Rare Earth Element Resource's Bear Lodge project, are all hosted by carbonatites.
For more information on Canada Rare Earths, please contact our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither 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 release. All of the above is subject to TSX.V and regulatory acceptance.
FORWARD LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's Pre-Development Agreement and the exploration of the Goeland Project, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's obligations pursuant to the Pre-Development Agreement and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly 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 law.
« Previous Release - June 25th, 2007 | Next Release - January 24th, 2008 »
