|November 05, 2009|
|Berkley Resources Inc. ("Berkley" or the "Company") reports that it has sold its 10% interest in the Senex Area, Alberta properties to its joint interest partner for total consideration of approximately $240,000. Although Senex continues to be an attractive long term project with substantial amounts of oil and natural gas in place, development costs to bring the project to production continue to increase. The Company determined that a project such as Senex would be more appropriate for a mid-size or larger operator that has substantial discretionary cash flow rather than a junior operator that must rely on monies raised via equity financing in order the continue to fund the project's development. This has become increasingly difficult with the prevailing market conditions. Accordingly, the Company decided to release from Senex and|
focus on less capital intensive projects that provide opportunities for early cash flow and better return on investment.
One such project is the Wabamun sour gas project at Crossfield. The Company reportsthat the Operator, Standard Energy Inc., is proceeding well with the licencing process. Although it is unlikely that a license will be issued without a regulatory hearing, the hearing process itself is expected to move along more quickly now inasmuch as drilling activity is down in Alberta resulting in the Licensing Board having more open time available to deal with more complex applications like Crossfield.
ON BEHALF OF THE BOARD
Chief Executive Officer
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