TORONTO, ONTARIO--(CCNMatthews - Dec. 14, 2006) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company") today released additional information regarding the previously announced 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").
Pursuant to the transaction, Westchester will sell to Aspen its interest in approximately 3,000 acres (1,500 acres net to Westchester) of drilling leases in the Daly Field in Manitoba and the associated wells and production, 8 sections (4 net sections) of drilling leases in southeast Saskatchewan and the two test wells drilled in 2004, and approximately 1,600 acres (800 net acres) of prospective lands in North Dakota. The purchase price for Westchester's 50 percent interest in the JV will be equal to the aggregate amounts owing at closing by Westchester to Aspen in respect of the JV, and paid through an offset of such amount. The amount is currently estimated by Aspen at approximately $1.6 million, subject to closing adjustments. These assets have been the only source of revenue for Westchester from ongoing operations since October 2005. The transaction price includes the value of all current and future site reclamation costs and liabilities associated with all wells drilled under the JV. The transaction remains subject to regulatory and shareholder approval.
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, the failure to acquire necessary regulatory and or shareholder approvals for the proposed transaction, 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 in no way passed upon the merits of the proposed transaction and has neither reviewed nor approved of the contents of this press release.