VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 22, 2014) - Archer Petroleum Corp. ("Archer" or the "Company") (TSX VENTURE:ARK)(DBFrankfurt:A6VA) is pleased to provide the following corporate update.
The Company achieved many goals in 2013 and is looking forward to further significant developments in 2014. Since its initial financing in January of last year, Archer has continued to work towards becoming a key player in the new American oil sands sector. The Company has also positioned itself well to become a provider of a cutting edge, global heavy oil/bitumen extraction technology, and to potentially expand its heavy oil production focus beyond the United States. Following are some of the major goals accomplished by the Company in 2013:
Acquisition of Sandklene 950 Rights
In the first half of 2013, Archer secured the rights to purchase and use Sandklene 950 in the United States. Sandklene 950 is a patented and proprietary, EPA-approved surfactant, which is potentially one of the most efficient and cost-effective chemicals for the non-thermal extraction of heavy oil from oil sands. Originally created for use in oil spill cleanup, Sandklene 950 is biodegradable, non-toxic and 90% recyclable. Combined with enhanced, yet traditional, mining processes, use of Sandklene 950 can undercut the capital expenditure requirements of companies incorporating costly, heat-requiring solvents in the extraction of heavy oil.
In the latter part of 2013, Archer acquired certain exclusive rights to manufacture and distribute Sandklene 950 internationally. The Company has received wide-ranging inquiries for the use of Sandklene 950 on an international basis and feels that the future potential to explore the use of this technology in areas such as Asia, South America and North Africa, among others, will be powerful growth drivers for the Company.
Acquisition of Oil Sands Assets
During 2013, the Company began acquiring interests in oil sands projects in the states of Kentucky and Utah. Combined heavy oil reserves in both states, as reported by government agencies, is said to be over 35 billion barrels. Archer is focused on achieving 2014 heavy oil production in Kentucky initially, due to the state's streamlined permitting process, the availability of excellent oil sands land, enthusiasm from local communities, and the fact that Sandklene 950 is currently being implemented in a commercial production scenario by Archer's partners in Kentucky. This first production facility is now undergoing operational fine-tuning and is ramping up production to achieve commercial levels in the coming weeks. Archer's drive to maximize shareholder value through the construction of multiple production facilities in the American oil sands will be greatly facilitated through the use of this existing production facility as a virtual blue print for future development.
Archer currently holds approximately 2,000 acres of land in Kentucky and Utah and expects to double this position in early 2014. Each acre acquired in US government-outlined oil sands belts increases Archer's exposure to heavy oil by potentially tens of thousands of barrels. The Company has established excellent working relationships with family-based landholders to acquire further production projects, and is also turning its focus toward similar relationship-building with families in the state of Alabama, where estimated heavy oil from oil sands reserves totals some 6.4 billion barrels.
In May 2013, the Company's shares (TSX VENTURE:ARK) hit a trade high of $0.66 per share and in July 2013, the Company successfully closed a $1 million financing. The majority of these proceeds were used for the acquisition of the international rights to Sandklene 950 as well as for land acquisitions.
In order to provide market support and to increase corporate exposure in the financial community, Archer has brought in Progressive IR Consultants Corp. to provide investor relations services going into 2014. Archer has also signed a contract with Stockhouse.com to increase exposure to investors over the next year.
Management is very pleased about developments to date and remains dedicated to our goal of achieving initial heavy oil production in the American oil sands in 2014.
For further information on Archer, please contact Kris Kottmeier of Progressive IR at (604) 506-2502, or via email at [email protected].
About Archer Petroleum:
Archer is an independent energy company focused on exploration and development in North America. Archer's common shares are listed on the TSXV under the symbol "ARK" and the DB Frankfurt exchange under "A6VA". Further information on Archer can be found on the Company's website at www.archerpetroleum.com.
ON BEHALF OF ARCHER PETROLEUM CORP.
Colin Bowkett, Director
Neither the 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 news release.
Disclaimer for Forward-Looking Statements
Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, and are based on expectations, estimates and projections as of the date of this release. Forward-looking statements in this release include, without limitation, statements with respect to the Company's plans for 2014; its goal of becoming a provider of a cutting edge, global heavy oil extraction technology; its plans with respect to property acquisitions and potentially expanding its business internationally as growth drivers for the Company; and statements regarding potential increases in the Company's exposure to heavy oils by potentially tens of thousands of barrels as the result of additional land acquisitions. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and there can be no assurance that such statements will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, that the Company is unable to implement its proposed business expansion, either in North America or internationally; that the Company is unable to complete any planned land acquisitions or to realize any increase in exposure to heavy oil as a result thereof; risks related to the Company's licenses with respect to the Sandklene 950 technology; and market conditions in the Company's industry and the economy generally. The Company assumes no obligation to update these forward-looking statements, or, if applicable, to update the reasons why actual results differ from those projected in the forward-looking statements, except in accordance with applicable securities laws.