DLR Global X US Dollar Currency ETF

NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWS WIRE SERVICES

In connection with the previously announced proposed business combination (the
"Business Combination") between Drift Lake Resources Inc. ("DLR") (TSX
VENTURE:DLA), 2267582 Ontario Inc. ("FinanceCo") and Northbrook Energy, LLC
("Northbrook"), DLR is pleased to announce that Northbrook has agreed to
acquire, through a wholly-owned subsidiary, an undivided 25% interest in the
License Contract for Exploration and Exploitation of Hydrocarbons dated April
15, 2009 (the "Bayovar License") governing the parcel of land referred to as the
Bayovar Prospect located in the Country of Peru in consideration of (i) a cash
payment to be made in the aggregate amount of US$2,000,000; and (ii) the
issuance of such number of common shares of DLR ("DLR Shares") as shall entail a
value of US$3,000,000, based on the weighted average closing price of the DLR
Shares on the TSX Venture Exchange (the "TSXV") for the first ten trading days
after the completion of the Business Combination.  Completion of the acquisition
remains subject to the completion of the Business Combination and receipt of all
applicable approvals, including the approval of applicable regulatory
authorities in Peru and the approval of the TSXV.


DRILLING COMMITMENT AND OPERATIONS

In accordance with the terms of the exploration and production participation
agreement dated as of February 4, 2011 entered into with Faulkner Exploration,
Inc., Faulkner Exploration, Inc. S.A. and Faulkner Exploration and Production,
Inc. (the "Bayovar Agreement"), Northbrook will participate in the first five
wells drilled out of the ten well locations on the Bayovar block approved by the
Peruvian Ministry of Energy and Mines. In respect of all drilling activities in
which Northbrook participates, Northbrook shall be responsible for 25% of the
applicable costs plus a working interest payment in an amount equal to 2.5% of
applicable costs for each of the first five wells drilled; 1.5% of applicable
costs for the next five wells drilled; and 1% of applicable costs for each well
drilled thereafter. Faulkner Exploration, Inc. S.A. shall be the operator under
the terms of the Bayovar Agreement.


BAYOVAR POTENTIAL

The Bayovar License includes the rights to 175,000 onshore acres in Block XXVII
on the western edge of the Sechura Basin. The block includes acreage lying along
the eastern side of the major Illescas fault which has been the trapping fault
for a number of large fields north of Bayovar. These offset fields include La
Casita, San Francisco, San Pedro and, most recently, Esperanza.


The primary target exploration zones are the Verdun and Paleozoic both of which
have been found to be both oil and gas productive in the offset fields.
Additional evidence of the prospectivity of the Bayovar block includes shallow
gas recoveries from wells drilled on the block in the 1920's and 30's.


STRATEGIC IMPORTANCE

Management believes that the Bayovar block is in a strategically advantageous
location for a number of reasons. The major Petroperu oil pipeline crosses the
northern part of the concession and terminates at the Port of Bayovar where it
is shipped 70 kilometers to the refinery in Talara. Gas markets in the area
include two existing phosphate mines, fish meal plants and a large petrochemical
plant currently under discussion. The initial drilling area is in a flat,
semi-barren and sparsely populated area with existing roads. Management is of
the view that geologically, Bayovar sits over an uplift that allows access to
the primary reservoirs at relatively shallow depths (approx. 4,000 feet) which
should keep gross drilling costs per well in the US$2,000,000 range.


TERMS AND STATUS OF LICENSE

Peru has a sliding scale royalty from 20% up to 5,000 bopd to a maximum of 35%
at 100,000 bopd. The work program under the Bayovar License includes five phases
over seven years. The effective date was April 2009 and the first two data
gathering phases, which included an aeromag shoot and geochemistry, have been
completed ahead of schedule. Under the Bayovar License, the first exploration
well must be drilled by April 2013. However, the permitting process is almost
complete and the first well is estimated to be spudded in the middle of 2011,
pending government approval.


MANAGEMENT COMMENT

Doug Manner, Managing Member of Northbrook, stated, "The Bayovar block in Peru
provides a great initial step in our plans to accumulate quality assets with
large reserve potential in South America. With a proven trapping mechanism
running through the block and known productive reservoirs having been penetrated
previously in the area, the risk profile is greatly improved compared to many
exploration opportunities of this nature. We are excited to be working with
Faulkner Exploration to jointly develop the Bayovar area over the next few years
and look forward to our first well in the near future."


Completion of the Business Combination is subject to a number of conditions,
including the approval of the TSXV and the requisite majority approval of
shareholders of each of Northbrook, FinanceCo and DLR. The Business Combination
cannot close until the approval of shareholders of each of DLR, FinanceCo and
Northbrook and all required regulatory approvals are obtained. There can be no
assurance that the Business Combination will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in any management information
circular or filing statement to be prepared in connection with the Business
Combination, any information released or received with respect to the proposed
Business Combination may not be accurate or complete and should not be relied
upon. Trading in the securities of DLR should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed Business
Combination and has neither approved nor disapproved the contents of this press
release.


Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking
statements that involve substantial known and unknown risks and uncertainties,
including statements relating to the Bayovar License and the timing of
completion of drilling commitments and operations on the Bayovar License.
Forward-looking statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting", "intend",
"could", "might", "should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking statements. Although Northbrook's forward-looking statements are
based on the beliefs, expectations, opinions and assumptions of Northbrook's
management on the date the statements are made, such statements are inherently
uncertain and provide no guarantee of future performance. These forward-looking
statements are subject to numerous risks and uncertainties, certain of which are
beyond the control of DLR, FinanceCo and Northbrook, including, but not limited
to, the impact of general economic conditions, inherent risks involved in the
exploration for and development of crude oil and natural gas properties, the
uncertainties involved in interpreting drilling results and other geological and
geophysical data, estimating resources, fluctuating energy prices, the
possibility of cost overruns or unanticipated costs or delays and other
uncertainties associated with the oil and gas industry, and dependence upon
regulatory and shareholder approvals. Readers are cautioned that the assumptions
used in the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Northbrook does not assume
any obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change, other than as
required by law, and investors should not attribute undue certainty to, or place
undue reliance on, any forward-looking statements.

Global X US Dollar Curre... (TSX:DLR)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Global X US Dollar Curre... (TSX:DLR)
Historical Stock Chart
Von Mai 2023 bis Mai 2024