The Company today announced, further to its news release of November 18, 2012, the execution of a term sheet with a private oil company ("Privco") for the continued development of its LAK Ranch property in Wyoming.
Under the term sheet, subject to regulatory approval, Derek and Privco will form a 60%-40% joint venture, with Privco having the 60% interest. Privco would be operator of the Joint Venture. As consideration for entering into the Joint Venture, Privco will, among other thing, provide a cash payment to Derek and conduct an initial drill program of at least 5 wells within 12 months of closing. Pending completion of industry documentation, closing is anticipated for January 31, 2013.
Derek is currently offering a private placement of up to 20,000,000 units at $0.025 per unit. Each unit will have one common share and one sixty month term common share purchase warrant. Each warrant will be exercisable into a further common share at a price of $0.05 per share for the first 12 months of its term and at $0.10 per share for the next 48 months.
Derek Oil & Gas Corporation is a Canadian based, publicly traded oil exploration and production company that utilizes enhanced oil recovery (EOR) techniques to develop new production from reservoirs in North America. Derek's current focus is on the further development and increasing production from their prime property located in NE Wyoming's prolific Powder River Basin.
Derek Oil & Gas Corporation is trading in Canada on the TSX Venture Exchange with the symbol DRK
ON BEHALF OF THE BOARD
Mr. Barry C.J. Ehrl,
President and C.E.O.
For further information please contact Derek's Corporate Communications Department at:
Telephone: 1-888-756-0066 or (604)-331-1757
Corporate E-Mail: info@derekoilandgas.com
Website: http://www.derekoilandgas.com
"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."
This document includes forward- looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil & Gas Corporation's LAK Ranch project. When used in this document, the words "potential", "plan", "could", "estimate", "expect", "intend", "may", "should", and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Derek's LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks.
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