Thursday, June 9, 2011 – VANCOUVER, B.C., CANADA, Maxim Resources Inc., (Maxim), (TSXV:MXM Frankfurt:M5H OTCBB: MXMSF), is providing an update to its news release of November 24, 2010 with respect to a Letter of Intent, (LOI), to Purchase Jasmin Oil and Gas Limited, (Jasmin).
On November 24, 2010 Maxim and Jasmin entered into an LOI with respect to the acquisition of 100% of the shares of Jasmin. This LOI contained conditions of due diligence and operational review.
As a result of the due diligence and operational review, Maxim prepared a definitive Share Purchase Agreement which was presented to Jasmin and its shareholders. These contained terms necessary to resolve certain issues that had arisen during the due diligence review and to satisfy certain conditions that would be necessary to finance the purchase.
Maxim continues to request information from Jasmin and its shareholders in an attempt to satisfy these conditions and resolve all outstanding issues with the Share Purchase Agreement in order to enable execution of the agreement and completion of the proposed acquisition.
Jasmin Field Report – Period Ending April 2011
Jasmin have been completing the installation of a Gathering and Transfer System. This is being put into operation with the temporary use of a 300 barrel tank already installed at site and will temporarily be used as the “sales tank”. The end of April 2011saw the infrastructure works, including piping and wiring, along with the pump stations all completed and buried in anticipation of startup. At the time of the April 2011 report final inspection was yet to be completed.
Wells ER 98, 100 and 101 continue to produce satisfactorily through pumping. Well ER 99 was experiencing some reduced production levels late in the month and the well was shut down and workover was to be performed. Well ER 102 remains shut down at this time and fluid levels are being monitored. The well will be swabbed when determined appropriate.
Production during the month of April 2011 was at an average of 102 barrels per day.
Maxim is a junior oil and gas production and exploration company based in Vancouver, Canada. Maxim presently holds, through NSOG, a 69% Net Revenue Interest in exploration and production of Jasmin within the South Erin Block, which cover 1,350 acres. After payout of the investment to Maxim, the Net Revenue Interest will reduce to 41%. Jasmin has drilled 5 wells to date and the exploration licenses for this Block allow for up to a further 42 wells to be drilled.
Issued on behalf of the Board of Directors of
Maxim Resources Inc.
President & CEO
(604) 630-0280 or toll free at 1-888-882-8891
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This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.