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PetroShale Announces Strategic Asset Acquisition in North Dakota

PetroShale Announces Strategic Asset Acquisition in North Dakota 
Transformative deal adds attractive acreage with substantial future
upside 
CALGARY, ALBERTA -- (Marketwired) -- 01/15/14 --   PetroShale Inc.
("PetroShale" or the "Company") (TSX VENTURE: PSH) is pleased to
announce that it has finalized an agreement to acquire an 18.75%
Working Interest in a proposed drilling unit in McKenzie County,
North Dakota, for a total purchase price of US$3.25 million,
including 200,000 common shares issued at a price of $1.34 per share.
The Company intends to use existing credit facilities and cash
resources to fund the cash portion of the purchase price and
anticipates the transaction will close before the end of January. 
This transaction is a continuation of PetroShale's strategy to
selectively acquire acreage that offers highly economic upside
potential, and is operated by a leading Basin operator.  
Transaction Details 
The acquired acreage is being spaced for 8 wells and will be operated
by EOG Resources, Inc. Of these 8 gross drilling locations, 4
locations have reserves assigned to them as outlined below. The
following reserve information relates solely to this transaction, and
does not reflect the Company's pre-existing reserves. These reserve
volumes are presented on a net working interest basis, before
royalties. 


 
 
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Proved reserves (2)                                               474.8 Mboe
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Proved plus probable reserves (2)                                 697.7 Mboe
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Proved reserves (discounted 10%/year) (1)(2)                  US$9.3 million
----------------------------------------------------------------------------
Proved plus probable reserves (discounted 10%/year) (1)(2)   US$14.9 million
----------------------------------------------------------------------------

Notes:  


 
 
1.  Based on a December 31, 2013 forecast of West Texas Intermediate ("WTI")
    for oil prices and NYMEX Henry Hub for natural gas prices, adjusted for
    quality and transportation costs. 
2.  Based on the working interest to be acquired in the reserves before the
    calculation for royalties, and before the consideration of the vendor's
    royalty interest reserves. Reserve estimates for the assets were
    prepared by PetroShale's independent reserves evaluator Netherland,
    Sewell & Associates Inc. ("NSAI") as of December 31, 2013. The reserves
    data summarizes the crude oil, natural gas liquids and natural gas
    reserves and the net present values of future net revenue for these
    reserves using forecast prices and costs. The reserves information has
    been prepared in accordance with the standards contained in the COGE
    Handbook and the reserve definitions contained in NI 51-101, with the
    exception that the effective date of the report precedes the date of the
    acquisition. 

Investor Relations Firm Retained 
PetroShale also announces it has retained 5 Quarters Investor
Relations, Inc. ("5QIR") to provide strategic investor relations (IR)
services on behalf of the Company. 5QIR is a Calgary-based capital
markets communications firm providing strategic counsel on financial
communications, continuous disclosure compliance and proactive
corporate outreach programs for public and private companies. 
Under the terms of the agreement, 5QIR will provide investor
relations services to the Company for a term of three months, after
which the agreement will automatically renew on the same terms,
subject to termination upon 14 days' written notice by either party.
As consideration for the services, 5QIR will be paid a retainer fee
of $3,000 per month. 5QIR acts at arm's length to PetroShale and does
not have any interest, directly or indirectly, in PetroShale or its
securities, or any right or intent to acquire such an interest.  
The appointment of 5QIR remains subject to approval by the TSX
Venture Exchange.  
About PetroShale 
PetroShale is a growing oil company committed to value creation by
identifying and consolidating interests in the prolific, multi-zone
Williston Basin in North Dakota and Montana. Through a strategic
relationship with Denver-based Slawson Exploration Company, Inc.
(SECI), a division of Slawson Companies, PetroShale seeks to leverage
SECI's operating expertise to effectively and efficiently exploit
this high-impact resource. PetroShale manages its risk and capital
exposure by acquiring working interests in fields being developed by
large, experienced and capable operators who employ leading-edge
technologies to maximize production, optimize ultimate recoveries and
enhance rates of return.  
About 5QIR 
Based on the belief that effective Investor Relations goes beyond
four quarters, 5 Quarters Investor Relations, Inc. was established to
support public companies with financial communications, continuous
disclosure compliance and proactive investor outreach programs. The
firm is based in Calgary, Alberta, and is owned and operated by Cindy
Gray, a seasoned IR professional with over 16 years of experience
working in IR as well as leading the oil & gas business development
practice for TSX and TSX Venture Exchange from Calgary. For further
information, please visit www.5qir.com. 
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 release. 
Note Regarding Forward-Looking Statements and Other Advisories  
It should not be assumed that the discounted future revenue estimated
by NSAI represents the fair market value of the reserves. Company
interest means, in relation to the Company's interest in production
and reserves, the Company's working interest (operating and
non-operating) before the deduction of royalties payable and
including such entity's royalty interest in production and reserves. 
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws
relating to the Transaction, the Company's plans, the closing of the
Transaction, the timing of the Operator's development and drilling of
the assets, and other aspects of management focus, objectives,
strategies and business opportunities. Forward-looking information
typically uses words such as "anticipate", "believe", "project",
"expect", "goal", "plan", "intend" or similar words suggesting future
outcomes, statements that actions, events or conditions "may",
"would", "could" or "will" be taken or occur in the future.
Statements relating to "reserves" are also deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves and
resources described exist in the quantities predicted or estimated
and that the reserves or resources can be profitably produced in the
future. The forward-looking information is based on certain key
expectations and assumptions made by the Company's management,
including expectations and assumptions concerning prevailing
commodity prices, exchange rates, interest rates, applicable royalty
rates and tax laws; future production rates and estimates of
operating costs; performance of existing and future wells; reserve
and resource volumes; anticipated timing and results of capital
expenditures; the success obtained in drilling new wells; the
sufficiency of budgeted capital expenditures in carrying out planned
activities; the timing, location and extent of future drilling
operations; the state of the economy and the exploration and
production business; results of operations; performance; business
prospects and opportunities; the availability and cost of financing,
labor and services; the impact of increasing competition; ability to
market oil and natural gas successfully; the Company's ability to
access capital, and obtaining the necessary regulatory approvals.  
Although the Company believes that the expectations and assumptions
on which such forward-looking information is based are reasonable,
undue reliance should not be placed on the forward-looking
information because the Company can give no assurance that they will
prove to be correct. Since forward-looking information addresses
future events and conditions, by its very nature they involve
inherent risks and uncertainties. The Company's actual results,
performance or achievement could differ materially from those
expressed in, or implied by, the forward-looking information and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking information will transpire or
occur, or if any of them do so, what benefits that the Company will
derive therefrom. Management has included the above summary of
assumptions and risks related to forward-looking information provided
in this press release in order to provide security holders with a
more complete perspective on the Company's future operations and such
information may not be appropriate for other purposes.  
Readers are cautioned that the foregoing lists of factors are not
exhaustive. Additional information on these and other factors that
could affect our operations or financial results are included in
reports on file with applicable securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com). These
forward-looking statements are made as of the date of this press
release and the Company disclaims any intent or obligation to update
publicly any forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.  
Where amounts are expressed on a barrel of oil equivalent ("boe")
basis, natural gas volumes have been converted to boe using a ratio
of 6,000 cubic feet of natural gas to one barrel of oil (6 Mcf: 1
Bbl). This boe conversion ratio is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given the value ratio
based on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6 Mcf: 1 Bbl,
utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an
indication of value. 
Where volumes of reserves and production have been presented, they
have been presented as company working interest, gross of royalties. 
Contacts:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com 
5 Quarters Investor Relations, Inc.
Cindy Gray
403.828.0146
www.5qir.com
 
 
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