/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
KELOWNA, BC, Dec. 6, 2016 /CNW/ - Georox Resources Inc.
("Georox" or the Corporation") (GXR:TSX-V; OF6A:FRA)
Recently Georox has initiated a process to enhance production and
reduce operating costs from its existing oil wells at Red Earth,
Alberta. In addition the company
has pre evaluated opportunities beyond primary oil recovery. The
Corporation owns 2.125 sections of land and operates eight wells.
The property is located approximately 320 km northwest of
Edmonton. Georox is producing 78
barrels of light oil and 20,000 cubic feet of solution gas per day
from the Q4Q Pool in the Granite Wash formation.
1. All producing Red Earth wells have been recently
converted to utilize solution gas produced from the Red Earth wells
for fuel instead of propane. This will significantly reduce
operating costs, resulting in higher cash flows. The amount of gas
being processed for sales will accordingly be reduced giving rise
to a slightly lower boepd rate but significantly higher cash flow
income.
2. Two low rate wells have been shut in at locations
1-11 and 2-11 due to uneconomic production. These wells will be
evaluated for future use as injection wells in the potential water
flood.
3. Preliminary evaluation of a water flood program at
Georox's Red Earth Granite Wash pool indicates that more than
200,000 barrels of incremental oil is likely. Preliminary economics
indicate that such a project would be economic at current oil
prices. Reviews are underway to determine the optimal injection
sites and detailed economic analysis will follow.
Georox is encouraged with the results from its preliminary
evaluation and work program and is continuing to investigate other
methods to increase production and reduce operating costs at Red
Earth.
About Georox
Georox is a public oil and gas exploration and development
company focusing on conventional oil and gas reservoirs in
Western Canada. Georox will use
its experience to develop, acquire, and drill assets with potential
for primary and secondary recovery.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating
to the future operations of the Corporation and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward looking statements that
involve risks and uncertainties. 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. More particularly, it contains
forward-looking statements concerning the use of proceeds from the
Private Placement.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in the United States. The Units (or constituent
securities) have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Georox Resources Inc.