VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2012) - Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) ("Saturn" or the "Company") is pleased to announce that it has entered into an agreement with Vector Exploration Corp. ("Vector") for exploration & development of the Company's Little Swan and Bannock Creek oil & gas properties (the "Properties") located in eastern Saskatchewan.
Vector Exploration Corp. is a private, Calgary-based oil & gas company owned and operated by Murray Swanson, CEO, Chris Barton, President & COO, and a team of oil & gas professionals (the "Vector Team") with expertise in exploration and production. Prior to founding Vector Exploration Corp., Mr. Swanson acted as President / CEO and Mr. Barton Manager of Geophysics of Reliable Energy Corp., an oil & gas exploration and production company which successfully identified and drilled over 70 wells in Manitoba and Southern Saskatchewan achieving 1,100 barrels per day in oil production (100% oil) before being sold to Crescent Point Energy Corp. (TSX: CPG) in March 2012 in a transaction valued at $99.1 million.
Murray Swanson is an Alberta-based oil & gas executive with over 30 years of experience in the oil & gas industry in western Canada. Along with international experience he has also worked for Shell and Chevron in western Canada. He has also founded, owned, operated and sold several Private E&P and Service companies.
Mr. Barton has a Bachelor of Science degree in Geology from the University of Calgary (1981) and over 30 years of experience across the entire Western Canadian Sedimentary Basin and Williston Basin. Beginning his career as a geologist at Unocal, he transitioned to the role of geophysicist and has since worked as a staff and consulting geophysicist at Conoco Canada, Pinnacle Resources, Groundswell Energy, and Burlington Resources Canada. In 2006, he was appointed to the role of Vice President of Exploration at Kereco Energy and, since 2008, has been the President of Shadow Energy providing geophysical consulting to a number of public and private oil and gas exploration companies.
As per the terms of the Letter Agreement between Saturn and Vector ("the Parties"), the Parties have agreed that:
1. Upon signing of a definitive agreement between the Parties, Saturn will
grant Vector a 5% carried interest in the Properties in consideration
for services and expertise to be rendered to Saturn by Vector for
exploration of the Properties beginning from the date of the definitive
agreement to December 1, 2013.
2. On or before December 1, 2013, Saturn and Vector will evaluate
exploration results of the Properties and mutually decide to pursue one
of two options;
a. Saturn will transfer the Properties entirely into Vector in
consideration for a 90% equity interest in Vector. Vector's 5%
carried interest will be converted into a 10% equity interest in
Vector to be held by the Vector Team, provided that Vector pays to
Saturn 5% of the exploration expenses incurred by Saturn on the
Properties from December 1, 2012 to the date of the transfer.
b. The Properties will remain entirely owned by Saturn and Vector's 5%
carried interest in the Properties will convert to a 5% working
The terms of the Letter Agreement are subject to final review by Saturn's and Vector's legal counsel, the signing of a definitive agreement and the approval of the TSX Venture Exchange.
"We are very pleased to have finalized an agreement with the Vector Team," stated Stan Szary, President & CEO. "This structure anticipates success and will enable us to easily transition our oil & gas holdings into an operating entity with an established team of oil & gas professionals. I am convinced of the Vector Team's ability to build a tremendous value from early stage projects based on prior success, and they are an ideal partner for the Little Swan & Bannock Creek properties."
About Saturn Minerals Inc.
Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) is a junior Canadian energy company advancing a portfolio of oil and coal properties in Saskatchewan and Manitoba. The Company owns 370,000 acres of exclusive oil & gas rights in Saskatchewan and is advancing a number of oil exploration projects. Saturn has also made three shallow bituminous coal discoveries since 2009 with coal seams ranging in continuous vertical thickness from 9 to 89 meters. Saturn has a strategic ownership in Inowending Exploration & Development Corp., a First Nations owned exploration and development company co-founded by Saturn with a consortium of Saskatchewan First Nations active in Canada's prairie provinces.
On Behalf of the Board of Directors
SATURN MINERALS INC.
Stan Szary, Chief Executive Officer
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Saturn Minerals Inc.
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