CALGARY, ALBERTA — (Marketwire) — 09/20/11 — Paramax Resources Ltd. (TSX VENTURE: PXM) (“Paramax or the Corporation”) is pleased to announce that it has reached a financial resolution with its joint venture partner Bridge Resources Corp. (“Bridge”) in relation to previous capital expenditures on the Idaho project. The resolution, which covers all costs to June 30, 2011 results in a refund owing to Paramax of $250,000. As a result of this settlement, Paramax–s net working capital deficit as stated in its financial statements for the period ended June 30, 2011 moves to a positive $234,114. The settlement removes $1,213,790 in payables that were previously recorded by Paramax.
Going forward, the Western Idaho project will now be overseen by a newly reorganized joint operating committee. This committee will have two participants from each of Paramax and Bridge. Paramax will be represented by Mike Smith and Dan Roulston. Bridge will be represented by Nick Clayton and Reg Lowndes. The new Bridge committee members were necessary due to the recent senior management changes at Bridge. One of the first mandates of the newly formed joint operating committee will be a detailed review of the Field Development plan for the Willow and Hamilton areas. This review will include detailed analysis of cost estimates and development plans.
As part of the settlement agreement, Paramax has relinquished the exploration acreage outside of the Willow and Hamilton prospect areas to Bridge. The purpose is to allow Paramax to concentrate its resources on the development of these two significant project areas. Paramax now has a 50% interest covering an AMI of 33,280 acres between the two areas.
The future development of the Western Idaho project is awaiting final approval of the meter station site and the well stimulation program. Hearings with the State and County regulatory bodies in Idaho are continuing and once a final approval is received a detailed timeline and cost structure will be confirmed.
Forward-Looking Statements and Advisories
Statements herein that are not historical facts may be considered forward looking statements including estimated stimulation and drilling plans and the timing thereof, capital expenditures and the allocation thereof and the method of funding thereof and the timing thereof, timing of tie-in and commencement of production of wells, plans to increase proved producing reserves by drilling existing drilling inventory. These forward-looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Corporation–s future plans are forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling and completion rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, Paramax–s actual results may differ materially from those expressed in, or implied by, the forward-looking statements.
Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Paramax believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Paramax can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Paramax operates; the timely receipt of any required regulatory approvals; the ability of Paramax to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which Paramax has an interest in to operate the field in a safe, efficient and effective manner; the ability of Paramax to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline and facility construction and expansion; the ability of Paramax to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Paramax operates; and the ability of Paramax to successfully market its oil and natural gas products.
Readers are cautioned that the foregoing list of factors and assumptions is not exhaustive. Additional information on these and other factors that could affect Paramax–s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (), or at Paramax–s website. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Paramax does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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Contacts:
Paramax Resources Ltd.
Mike Smith
President & CEO
(403) 605-0866
Paramax Resources Ltd.
Dave Antony
Chairman
(403) 531-1710