TORONTO, ONTARIO--(CCNMatthews - Dec. 8, 2006) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company") today announced that it has entered into an agreement to sell to Aspen Group Resources Corporation ("Aspen"), 100 percent of its 50 percent interest in the properties that are subject to the joint venture between Aspen and Westchester (the "JV"). The transaction includes the interest of Westchester in all leases and wells held by the JV in Manitoba, Saskatchewan, and North Dakota, and any other assets of the JV. The purchase price for the JV Interest will be an offset of the aggregate amounts owing at closing by Westchester to Aspen in respect of the JV. The agreement is subject to regulatory approval. Westchester is arm's length to Aspen and exists under the laws of Ontario.
Westchester and Aspen formed the JV pursuant to an agreement made April 19, 2004 as extended by an agreement made October 26, 2004 whereby the companies agreed to jointly pursue oil and gas projects in North America. Prior to the JV with Aspen, Westchester was involved in mineral exploration. Westchester re-entered the mineral exploration business by executing an option agreement with Guyana Goldfields Inc. that became effective October 19, 2006 to earn a 50 percent interest in the Peters Mine Property in Guyana. The proposed sale of Westchester's interest in the JV represents all the Company's oil and gas interests and has no relation to the option agreement with Guyana Goldfields Inc.
Westchester Resources Inc. is a junior resource company. The Company's shares trade on the TSX Venture Exchange under the symbol "WSR".
Forward Looking Statements - Certain information regarding Westchester set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Westchester's control, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of reserve estimates, currency fluctuations and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.