Eros Announces Third Quarter Financial Results and Production Update
NEWS RELEASE
NR: 17-13
November 29, 2017
Eros Announces Third Quarter Financial Results and
Production Update
Vancouver, BC (November 29, 2017) Eros Resources Corp. (TSX.V: ERC) (“Eros” or the
“Company”) is pleased to report its financial and operating results for the third quarter of 2017.
The full third quarter Financial Statements and Management Discussion and Analysis are
available at www.sedar.com and at the Company’s website at www.erosresourcescorp.com.
In the quarter ended September 30, 2017, Eros announced the commencement of oil
production from its Flaxcombe project. Total oil production during the third quarte r was 5,900
barrels (5,310 to Eros). As a result, Eros is now a revenue -generating company, recording a
gross profit of $76,373 on revenue of $179,926. The company recorded net income for the
quarter of $90,929 or $0.00 per share and total comprehensive in come for the quarter of
$1,093,699 or $0.02 per share, including an unrealized gain of $981,643 on marketable
securities. At quarter end, Eros had $4,030,544 in cash and cash equivalents and working
capital of $4,268,191. In addition, the Company held $7,512,805 in marketable securities.
On September 20, 2017, the Company announced that wellbore 9 -13 had achieved a 30-day
initial production average of 80 barrels of oil per day (72 barrels to Eros). Two additional wells,
1-13 and 6-13 were successfully completed and brought on production during the quarter. As
at November 26, 2017 the combined 30 -day average production rate of the three Section 13
wells was 1 20 barrels per day (1 10 barrels to Eros). Eros holds a 90% beneficial working
interest in the three Section 13 wells until it recovers its initial capital investment totalling $1.6
million and will hold a 50% working interest thereafter. Project partner and operator Westcore
Energy Ltd (“Westcore” or “WTR”) holds title to the Section and to the remai ning interest in
the wells.
Well 9 -13, the first brought to production, continues to produce at a steady rate . As at
November 26, 2017 its 30-day rolling average production rate had increased to over 100 barrels
per day. Well 6-13 recorded an IP-30 test average of 16.7 barrels per day but its 30-day rolling
average production rate has since fallen to less than 10 barrels per day. Production from Well
1-13 has been intermittent, due to high levels of sand production. Over the six-week period
from September 26 th to November 8 th, Well 1-13 recorded only 13 days of oil production,
however, steady oil production has now resumed at an average rate less than 10 barrels per
day. Eros, together with Westcore, continue to work on ways to optimize production from the
field.
On October 5, 2017, Eros announced the acquisition of a 33.33% direct working interest in
three sections which are contiguous with Westcore’s existing land position, pursuant to a Joint
Operating Agreement with WTR and Saturn Oil + Gas Inc (“Saturn” or “SMI”). This provides
Eros with a direct interest in the future exploration results, reserve assessment and possible
future development within the Flaxcombe district.
“We are very pleased to have transitioned to an oil producing company with the successful
completion of the first phase of our investment into the Flaxcombe heavy oil field. With our
existing right of first refusal to fund up to six additional wells in the field together with our recent
acquisition of a one -third interest in three sections and further exploration efforts , we believe
we are well positioned to increase our production volume in the coming months,” stated Ron
Stewart, President and CEO of Eros.
About Eros
Eros Resources Corp. is a Canadian public company focused on the exploration and
development of resource projects in North America. Eros has as its prime business objective
the identification, acquisition and exploration of advanced resource projects with a North
American focus. A secondary focus of the Company is to make strategic investments with a
global focus and a diverse commodity base. T he Company’s expertise in the resource sector
supports the selection of these strategic investments.
On behalf of the Board of Directors of
Eros Resources Corp.,
Ron Stewart
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute “forward looking information” and
“forward looking statements” within the meaning of applicable Canadian and United States securities legislation,
including, among other things, this p ress release includes references to mineral resources and future potential
forecast economics of extracting those resources. There is no certainty that any portion of the resources will be
confirmed with greater certainty. If confirmed, there is no certainty that it will be commercially viable to extract any
portion of the resource. There is no certainty that access to the resource area will be re-established, and if access
to the resource area is blocked for an extended period of time, or permanently, ther e is no certainty that any
compensation will be received by the Company. Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events to differ materially from those expressed
or implied by such forward-looking information, including the re-establishment of physical access to the property,
the availability of adequate and secure sources of funding to construct the extraction facilities required to extract
the mineral resources, prevailing commodity prices, the receipt of regulatory approvals, environmental risks and
the performance of personnel. While the Company considers its assumptions to be reasonable as of the date
hereof, forward-looking statements and information are not guarantees of future performance and readers should
not place undue importance on such statements as actual events and results may differ materially from those
described herein. The Company does not undertake to update any forward -looking statements or information
except as may be required by applicable securities laws.
Oil and Gas Advisory
Production rates disclosed herein are preliminary and are not determinative of the rates at which the wells will
continue to produce and decline thereafter and may not necessarily be indicative of the long-term performance or
estimated ultimate recovery.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.