TORONTO, ONTARIO--(Marketwire - Sept. 8, 2011) - Stetson Oil & Gas Ltd. ("Stetson" or the "Company") (TSX VENTURE:SSN) is pleased to provide an update on its operations and corporate initiatives.
The Company drilled its first exploration well, MHA#1-11H-148-90, with its partner, Red Willow Great Plains, LLC in September, 2009 in the Williston Basin of North Dakota. The initial completion and testing program of the primary target, the Bakken zone, yielded marginal results and the well was temporarily abandoned in the zone.
A subsequent geologic review provided indications of potential hydrocarbons in a shallower zone in the existing wellbore and Stetson and its partner decided to pursue a re-completion program to test this potential. However, because the well was drilled in a location to maximize the horizontal length in the Bakken within the standard spacing area, the vertical portion of the hole is located outside of the standard spacing area. The re-completion will be performed in the vertical portion and, as a result, approval of non-standard spacing is required. An application therefore has been submitted to the North Dakota Industrial Commission ("NDIC") Oil and Gas Division and this application has been placed on the docket for the NDIC meeting at the end of September 2011, after which the re-completion attempt will proceed, assuming the approval is granted.
With regard to its outstanding legal claim against Thomas Weisel Partners Canada Inc. ("Weisel") for damages arising in connection with the Company's incomplete bought deal financing of July 2008, the Company continues to advance its claim aggressively. Mediation has been scheduled for November 2011 with a trial to follow in February 2012 if Stetson and Weisel are unable to reach an acceptable settlement.
Stetson is also pleased to announce that its Board of Directors has appointed Neil Said as the Corporate Secretary of the Company.
Mr. Neil Said is a corporate securities lawyer who works as a legal consultant to various TSX and TSXV Venture listed companies in the mining and oil & gas industries. Mr. Said previously worked as a securities lawyer at a large Toronto corporate law firm. He obtained his Juris Doctor from the University of Toronto and received a Bachelor of Business Administration from Wilfrid Laurier University. In connection with his appointment, Mr. Neil Said has been granted 200,000 stock options to purchase the same number of common shares of the Company at a price of $0.10 per option exercised. The stock options, and any shares issued on exercise thereof, will vest in eight equal amounts quarterly with the first amount on issue, and will be subject to a four month statutory hold period.
Stetson is a junior oil and gas company with exploration assets in North Dakota, USA.
This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the drilling program on the Company; reserve estimates; estimates regarding future production; the receipt of regulatory approvals; expected management rationalization and benefits therefrom; statements with respect to the conduct and the strategy of our claim against Weisel; the merits of our claim; the receipt of damages in connection with the claim, the anticipated timetable of the claim; and the future financial and operating performance of Stetson and its projects. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, time and attention will be spent on the Acquisition than anticipated; and delays in obtaining regulatory approvals. Although Stetson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.