CARSON CITY, Nevada, March 22, 2012 - Drake Gold Resources (OTC Markets: DKGR) is pleased to provide updates on new developments concerning our Financing Partner and its First Acquisition.
Pursuant to previous press releases, Drake has secured a partnership with an investment corporation that has agreed to provide convertible debt financing. Based on the agreement the corporation will have the right to convert its debt into common shares that will have a 12 month restriction period which has been priced at a considerable premium to the current market. This will allow Drake to develop the producing oil & gas assets. One of the requirements of the corporation was that Drake complete the OTC Market Group's filings which have been completed. Once details have been approved by this new partner, Drake will release a press announcement completed with all financing details.
Drake has also completed the acquisition of producing oil & gas assets in Pennsylvania. The asset includes a number of oil producing wells on a large acreage package with enormous production capability through both rework and in-field drilling opportunities.
This initial acquisition is within the Marcellus Shale fairway, one of the nation’s largest natural gas shale formations. Natural gas producers already invested more than $4 billion in Pennsylvania in lease and land acquisition, new well drilling, infrastructure development and community partnerships. Such producers include Chesapeake Energy (Ticker: CHK), Southwest Energy (Ticker: SWN) and Rexx Energy (Ticker: REXX). Details of the acquisition will be released in a press announcement following the introduction of our Financing Partner.
Estimates have the proven secondary oil reserves at approximately 330 million barrels (1 Million Barrels = 1 MMbls) of oil in the Appalachian Basin Reservoir, based on a report by the US Department of Energy, with OOIP (Original Oil in Place) remaining reserves exceeding 60 billion barrels.
In addition to the first acquisition, Drake has identified several other producing oil & gas projects which have progressed to advanced stage discussions with to complete acquisitions / mergers. Drake anticipates entry into a Memorandum of Agreement in conjunction with the expected developments mentioned in this update which will be released upon execution of the Agreement.
For any inquires please contact Drake's Investor Relations at phone: 530-405-3547 or email: IR@Drakegold.com.
Please read the Forward Looking Statements & Risk Factors: http://DrakeGold.com/Risk_Factors