News Release: 2014-004
August 6, 2014
RHX COMPLETES $26 MILLION ACQUISITION
Vancouver, BC: Rosehearty Energy Inc. (C:-RHX), is pleased to announce that, as of August 1, 2014 the Company has completed its acquisition of Arax Energy Inc. first announced April 9, 2014. This interest in the South Temryuk License area is valued by AGR-TRACS, of Moscow, in their 51-101 dated October 1, 2013, at US $26,928,000 at a 10% NPV discount, or US $2.20 per RHX share.
The resource is rated as “2 C”, contingent. At a 20% NPV discount rate, the valuation is US $5,852,000, or US $0.48 per share. The 51-101 report has been filed on SEDAR under the Company’s profile.
Based on a 96 sq km 3-D seismic data report, the ST-1 well was drilled in 2008 to 3,865m. The well logs reported 13 prospective sand zones in the Chokrak stratigraphic interval, which is believed to be gas and condensate prone. Three (3) prospective sand zones were identified in the Sarmat stratigraphic interval, above the Chokrak, which is believed to be oil-prone. Testing gas flows in a 30 minute period, the Chokrak 12 interval flowed gas at a rate of 78,000 Sm3/day, or 2.75 mmcf/d. Subsequently the well was inadequately completed and must now be re-entered and tested and completed with modern equipment and techniques.
The Company plans to do a financing in August to re-enter the ST-1 well. Details of this financing will be reported as information is available.
On behalf of the Board of Directors of Rosehearty Energy Inc.
“Robin Dow”
Robin Dow, CEO
