Gulf Shores to Acquire Rocanville Acreage

Gulf Shores has entered into an agreement with a private arm's length Saskatchewan Company whereby Gulf will pay 60% of the cost of drilling, completing and equipping a vertical Bakken oil well to earn a 51% working interest before payout and a 42% working interest after payout in 640 acres in the Rocanville area of south east Saskatchewan. Gulf will pay 42% of the drilling, completion and equipping costs of the remaining 15 Bakken oil wells on the acreage to earn a 42% working interest in each well.

The acreage is centered on a seismically defined structure that is similar to the prolific Rocanville field that is located four miles to the east and has produced in excess of 4.8 million barrels of Bakken oil.

The first well is expected to be drilled during next month.