Patch International Inc. Seeks Strategic Alternatives

Patch International Inc. (“Patch”) is an emerging oil sands company with a total of 62.5 sections gross (50.5 net) of oil sands leases. Ells River is the primary play and consists of 32 sections (25.6 net) of land. There are 19 core holes and 64 miles of 2-D seismic over the Ells River lands and based on the core analysis, seismic interpretation, and confirmation by an independent reservoir modeling, the Ells River lands have a quality reservoir that is capable of sustaining economic production by means of Steam Assisted Gravity Drainage (“SAGD”).

McDaniel & Associates Consultants Ltd. (“McDaniel”) has provided a resource appraisal of the Ells River asset and has assigned a P50 contingent resource of 139 MMbbl of recoverable bitumen, and a P10 contingent resource of 203 MMbbl of recoverable bitumen. Patch estimates the Ells River asset holds an approximated 1.4 billion barrels of bitumen in place, and a project potential in excess of 40,000 bbl/d.

Patch also holds 10 sections (9.5 net) of oil sand leases in the Muskwa area which are in relative proximity to the Brintnell and Pelican Lake areas – both of which use cold flow production schemes. Based on the McDaniel resource appraisal, Muskwa has an estimated 109 MMbbl of oil in place.

Confidential information is expected to be available to qualified interested parties early February. Interested parties can call Gerry Stevenson or Chris Beaton at CIBC World Markets at 403-216-3013 and 403-260-0515, respectively.

Signed Confidentiality Agreements can be sent to Marcel Hewamudalige at CIBC World Markets at 403-216-3030.

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Download the Confidentiality Agreement (50 KB)