CALGARY, March 9 /CNW/ - GEOCAN Energy Inc. ("GEOCAN") is pleased to announce that it has, together with its partners, entered into a settlement agreement with Ceska naftarska spolecnost s.r.o. ("CNS") which settles all matters relating to the 2 year dispute over the Breclav Block property located in the Czech Republic.
Under the settlement agreement, GEOCAN and its partners will not initiate any future claims to the Breclav Block and have withdrawn all judicial and regulatory proceedings relating thereto. In consideration therefor, GEOCAN and its partners have accepted a financial settlement, payable in instalments. GEOCAN and its partners have been granted appropriate security, enforceable under the laws of the Czech Republic, for all of CNS's obligations under the settlement agreement.
The terms of the settlement agreement do not permit disclosure of the settlement amount; however, GEOCAN has concluded that the settlement amount represents a value for GEOCAN's 64.7058% interest in the Breclav Block which is fair and which is consistent with current Canadian market value pricing metrics for proven and probable reserves.
The settlement agreement does not affect GEOCAN's other interests in the Czech Republic which are currently being evaluated for exploration and development potential.
GEOCAN is an oil and gas exploration and production company with operations in Canada and the Czech Republic. GEOCAN trades on the Toronto Stock Exchange under the symbol "GCA" and currently has 14,310,216 common shares issued and outstanding.
/For further information: Wayne S. Wadley, President and Chief Executive Officer or Garry W. Lohuis, Vice President Operations, GEOCAN Energy Inc., Telephone: (403) 261-3851, Fax: (403) 261-3834, E-mail: glohuis(at)geocan.com, Website: www.geocan.com; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports(at)cnw./
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