SHL:CC - Spruce Ridge Oil & Gas Partners with Local Operator to Upgrade Saskatchewan Oil Production

(TheNewswire)

July 25, 2022 – TheNewswire – Ontario - Spruce Ridge Resources Ltd. (TSXV:SHL) (OTC:SRCGF) (“SpruceRidge” or the “Company”) is pleased to announce that SpruceRidge Oil & Gas Inc. a 100% owned subsidiary has signed a Letterof Intent with Original Oil Inc. (“OOI”), under which OOI willacquire 50% of the 4-section (? 1,036 hectares) lease near Unity,Saskatchewan, and 10 oil wells (of which 8 are now shut in) held bySpruce Ridge Oil & Gas Inc. (“SRO&G”).  OOI is aLloydminster-based, seasoned, successful oilfield operator in thearea.  OOI will become the operator and, at its own expense, willrepair and rehabilitate all of the shut-in Unity wells with a view toreducing the high level of water incursion that has been an ongoingproblem for SRO&G.  Highlights of the agreement are:

• As part of the agreement, OOI will assume liability forclosure, and SROG will be able to claim a refund of the $554,630security deposit that it paid under the Saskatchewan LLR program whenit originally acquired the Unity leases;

• OOI will use its experience, local expertise and localconnections to service, repair and rehabilitate all 8 of the shut-inwells at its own expense.  These expenses will be paid back fromMonthly Net Revenue (MNR) generated from these wells;

• OOI will pay SROG $250,000, to be paid by dividingMonthly Net Revenue (MNR) 75% to SROG and 25% to OOI, until SROG ispaid out, after which MNR will be divided 50/50.

John Ryan, CEO of Spruce Ridge, stated “by partneringwith Original Oil we will benefit from its experience in low-cost,efficient oil production.  We fully expect that the partnership willturn an underperforming asset into a source of significant cash flowfor years to come.”

Dustin Newman, P.Eng., President of Original Oil Inc.,stated “The Spruce Ridge oil play at Unity Saskatchewan is an oilplay that shows upside for oil production with low operating costs. The oil play in the Upper McLaren formation watered out prematurelyand with its years of experience solving problems in heavy oil,Original Oil is confident that the water problem can be economicallysolved and higher oil production resumed.  With the oil wellsflowlined into a central disposal well, a main cost driver in oilproduction, water hauling and disposal is eliminated.  Another maincost driver, propane costs, are also eliminated with the play sincegas wells are tied into the oil wells, providing the fuel necessary torun the play.”

The Unity operation also includes a water disposal welland ten shut-in gas wells.  The gas wells have no access to market asare lined into Repsol’s compressor, currently idle and awaitinghigher gas prices.  However, OOI’s plan is to use our own gas tofuel the oil production, keeping our energy cost to a minimum.  OOIwill pay SRO&G $1.00 per cubic metre to dispose of water from itsother operations.

About Original Oil Inc.

Original Oil is a private junior oil producer in theLloydminster, Saskatchewan Area.  Using local expertise in heavy oilproduction, Original Oil was founded in 2015, acquired land positionsfor future drilling and suspended oil wells.  Original Oilreactivated and increased oil production from the shut in wells to ahigh of 180 bbls/day in 2017.  Original Oil survived the low andnegative oil prices in 2018 – 2020, through low cost production andmaintaining strong relationships in the heavy oil service industry.  Original Oil has emerged from the low price environment with wellsand land to reactivate and grow the company further.

About Spruce Ridge Resources Ltd.

Spruce Ridge holds a 100% interest in 26,640 hectaresin Central Newfoundland, including:

• the 2,890-hectare Great Burnt VMS copper-goldproperty;

• the 4,575-hectare Pipestone nickel prospectand;

• the 19,175-hectare Foggy Pond property

Spruce Ridge currently holds 5,767,495 shares of CanadaNickel Company Inc. and 10,000,000 shares of Noble Mineral ExplorationInc.

For further information please contact:

John Ryan, President and CEO

Spruce Ridge Resources Ltd.

Phone: 519-822-5904

Email: spruceridgeresources@gmail.com

Forward-Looking Statements

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.  This News Release includes certain"forward-looking statements" which are not comprised ofhistorical facts.  Forward-looking statements include estimates andstatements that describe the Company’s future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward-lookingstatements may be identified by such terms as “believes”,“anticipates”, “expects”, “estimates”, “may”,“could”, “would”, “will”, or “plan”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherentrisks and uncertainties. Although these statements are based oninformation currently available to the Company, the Company providesno assurance that actual results will meet management’sexpectations.  Risks, uncertainties and other factors involved withforward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially fromthose expressed or implied by such forward-looking information.Forward looking information in this news release includes, but is notlimited to, the intention to complete the transactions, and theCompany’s objectives, goals or future plans. Factors that couldcause actual results to differ materially from such forward-lookinginformation include, but are not limited to an inability to completethe transactions, failure to identify mineral resources, failure toconvert estimated mineral resources to reserves, delays in obtainingor failures to obtain required regulatory, governmental, environmentalor other project approvals, political risks, inability to fulfill theduty to accommodate First Nations and other indigenous peoples,uncertainties relating to the availability and costs of financingneeded in the future, changes in equity markets, inflation, changes inexchange rates, fluctuations in commodity prices, delays in thedevelopment of projects, capital and operating costs varyingsignificantly from estimates and the other risks involved in themineral exploration and development industry, and those risks set outin the Company’s public documents filed on SEDAR. Although theCompany believes that the assumptions and factors used in preparingthe forward-looking information in this news release are reasonable,undue reliance should not be placed on such information, which onlyapplies as of the date of this news release, and no assurance can begiven that such events will occur in the disclosed time frames or atall. The Company disclaims any intention or obligation to update orrevise any forward-looking information, whether as a result of newinformation, future events or otherwise, other than as required bylaw.

This news release does notconstitute an offer to sell or a solicitation of an offer to buy norshall there be any sale of any of the securities in any jurisdictionin which such offer, solicitation or sale would be unlawful, includingany of the securities in the United States of America. The securitieshave not been and will not be registered under the United StatesSecurities Act of 1933, as amended (the “1933 Act”) or any statesecurities laws and may not be offered or sold within the UnitedStates or to, or for account or benefit of, U.S. Persons (as definedin Regulation S under the 1933 Act) unless registered under the 1933Act and applicable state securities laws, or an exemption from suchregistration requirements is available.

Copyright (c) 2022 TheNewswire - All rights reserved.