Guardian Announces Completion of Farm-in Gas Well and Credit Facility
April 9, 2010
PRESS RELEASE FOR IMMEDIATE RELEASE
Calgary, Canada – Guardian Exploration Inc. (TSX–V: GX) ("Guardian") announces that, under a farm-in arrangement with an Alberta-based private oil & gas exploration and development company, it has completed the drilling and completion of a new gas well in the Peace River Arch area of Northeast British Columbia. Testing of the well indicates a final gas rate of 14.9 E3M3/d or 525.97 mcf/d, with .003% H2S. Stabilized long term rates of 278 mcf/d are expected, similar to offset wells in the area.
Under the farm-in arrangement, Guardian paid 50% to earn a 50% interest in one section of land, subject to a 12.5% gross overriding royalty, and the right to acquire more land on the prospect.
In addition, Guardian announces that it has entered into a revolving demand facility in the aggregate amount of $1,000,000 with a private company owned by the President of Guardian Exploration Inc. In accordance with the terms of the debt facility, the lender will receive a $75,000 commitment and due diligence fee and the loan will accrue interest at the rate of 15% per year, payable monthly. In addition, the lender will receive a structuring fee in the amount of $50,000, represented by the issuance of 1,000,000 Guardian common shares at a deemed price of $0.05 per share,. The initial drawdown under the facility occurred on November 1, 2009 and expires on May 31, 2010. Final completion of the facility is subject to TSX Venture Exchange (“TSXV”) approval.
Pursuant to the structuring fee relating to the debt facility, 1,000,000 Guardian common shares (“Common Shares”) will be issued, subject to TSXV approval of the debt facility, on April 12, 2010, to a private company owned by Graydon Kowal, President, CEO and a director of Guardian. The Common Shares acquired by Mr. Kowal represent approximately 1.24% of the issued and outstanding Common Shares of Guardian post issuance. Prior to this transaction, Mr. Kowal held an aggregate of 9,294,353 Common Shares (23.39% of the outstanding Common Shares of Guardian) and options to purchase an additional 500,000 Common Shares upon exercise of options (the “Options”) in the capital of Guardian, representing approximately 24.34% on a partially diluted basis assuming the exercise of the Options.
Following this transaction, Mr. Kowal will hold an aggregate of 10,294,353 Common Shares (25.27% of the outstanding Common Shares of Guardian) and Options to purchase an additional 500,000 Common Shares of Guardian. If Mr. Kowal was to exercise all of the Options, it would represent a total of 10,794,353, or approximately 26.2% of the issued and outstanding capital of Guardian calculated on a partially diluted basis assuming the exercise of the Options.
The debt facility and subsequent issuance of the Common Shares to Mr. Kowal are subject to TSXV approval.
These securities were acquired for investment purposes only. Depending on economic or market conditions or matters relating to Guardian, Mr. Kowal may choose to either acquire additional securities or dispose of securities of Guardian.
Graydon Kowal is the President, CEO and a director of Guardian.
Guardian also announces that Mr. Dennis Jonk has resigned as a director of the Company, to pursue other business interests.
Guardian would also like to announce that, effective March 25, 2010, its new head office address is Suite 620, 510 – 5th Street SW, Calgary, Alberta, T2P 3S2.
Information about Guardian Exploration Inc.
Guardian Exploration Inc. is an Alberta-based oil and natural gas company. Guardian is engaged in the exploration for, and the acquisition, development and production of, natural gas and crude oil with emphasis on the shallow to mid-depth hydrocarbon prone zones of the western Canadian sedimentary basin in Alberta and northeastern British Columbia.
For further information please contact:
Graydon Kowal President and CEO (403) 269-5870
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements