direct/ Wyn Developments Inc.: Wyn Developments Previously Announced 21 1/3% Participation Agreement Finalized for the Prophet River, British Columbia, Canada Natural Gas Development Project
|Pressemitteilung von: Wyn Developments Inc.|
|(openPR) - VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/04/2006 -- Non-Brokered Private Placement of up to Can$4,150,000.00
Wyn Developments Inc. ("Wyn") (TSX VENTURE:WL) (PINK SHEETS:WYDPF) (FWB:YXE) has finalized an agreement to participate in the drilling of a Slave Point test well in the Prophet River district of northeastern British Columbia. This development is further to the Company´s news release issued February 2nd, 2006, "Wyn Developments Expands Natural Gas Development Potential in Northeastern British Columbia."
Under the terms of this Agreement, Wyn will pay 33 1/3% of the working interest cost to earn a 21.67% working interest in a Slave Point test well to earn 11 sections of leases (Block A) to the deepest depth drilled and the right to participate in the drilling of an option well to earn an additional 10 sections of leases (Block B) to the deepest depth drilled under similar terms. The Operator of this well, a North American Major Oil and Gas Producer will test multiple potential pay zones of natural gas including the Slave Point Formation and drilling is anticipated to commence within 4 - 6 weeks. This working interest is subject to a non-convertible 2.5% gross overriding royalty to the 100% working interest. The Operator has the right to convert their 35% working interest to a 12.5% non-convertible gross overriding royalty within 30 days of receipt of production test information. If the Operator converts its working interest to a royalty, the Company´s working interest will increase from a 21.67% working interest to a 33 1/3% working interest.
Upon the execution of this Agreement, the following will apply; Wyn Developments will issue, in the name of the Farmor, Tenaka Drilling Consortium, a number of fully paid and non-assessable common shares of the Company in three defined stages for the following amounts:
- $75,000 CAD upon the approval of the TSX-V.
- $75,000 CAD upon the completion of test well spudding.
- $200,000 CAD subsequent to proven and probable reserves in excess of 75 BCF of gas that are established (all zones) on any or all of the Option A and B lands (Total 5986 Ha.)
The shares issued will be based on the average market price on the date of issuance.
Non-Brokered Private Placement,
Wyn intends to offer up to Can$4,150,000.00
5,000,000 units @ 38 cents, with a 1/2 warrant @ 50 cents for a total up to Can$1,900,000.00 and
5,000,000 flow through units @ 45 cents with a 1/2 warrant @ 50 cents for a total up to Can$2,250,000.00
The funds will be used for Wyn´s obligation under the Participation Agreement for the Prophet River Slave Point Test Well and General Working Capital.
The private placement is subject to exchange and regulatory approvals and finders fees may be payable in accordance with TSX Venture Exchange policy.
Wyn looks forward to participation in this Prophet River Region Project and the continued development of the Bougie Trutch natural gas development project, located in northeastern British Columbia.
On Behalf of the Board of Directors
Daniel Kesonen, President
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Wyn Developments Inc.
North America Contact
(604) 685-5851 or Toll Free: (888) 685-5851
(604) 685-7349 (FAX)
Small Cap Invest Ltd.
49 (0) 69-24 24 93 49
49 (0) 12 12 544 71 04 62 (FAX)
SOURCE: Wyn Developments Inc.
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The issuer is solely responsible for the content of this announcement.