Desmarais Announces Strategic Virginia Hills Farm-In Agreement

    




 TSX Venture Exchange Symbol: DES 

 CALGARY, March 22, 2012 /CNW/ - Desmarais Energy Corporation   (the "Corporation" or "Desmarais") is pleased to announce that it has entered into a farm-in agreement  (the "Farm-in Agreement") with a private oil & gas company ("Privco") to drill and test the Beaverhill Lake formation on lands located in  the Virginia Hills area of Alberta. The Virginia Hills area has been  the focus of heightened industry activity and is emerging as a premier  light oil resource play. 

 The Farm-in Agreement provides the Corporation the right to earn 100% of  Privco's 50% working interest in all zones in the farmout lands (the "Farmout Lands"), totaling approximately 320 gross acres, by paying 100% of Privco's  costs to drill, case and complete two horizontal wells on the Farmout  Lands. The first well must be spud by December 31, 2012 and the second  well must be spud by December 31, 2013.  Privco will retain a  sliding-scale royalty ranging from 5% to 15% on the crude oil (and 15%  on all other hydrocarbon production) produced, saved and marketed from  such wells. Mr. James Long, a director of Desmarais, is a  non-controlling shareholder, and a director and officer, of Privco. 

 Reader Advisory:  This press release contains forward‐looking statements and forward‐looking information (collectively "forward‐looking information") within the meaning of applicable securities laws with respect to the  Farm-in Agreement, including the timing relating to the earning  commitments thereunder; the potential royalty retained by Privco; and  the target zones relating to Desmarais' potential drilling commitments.  Readers are cautioned that the foregoing list of factors should not be  construed as exhaustive. Forward‐looking information typically uses words such as "anticipate",  "believe", "project", "expect", "goal", "plan", "intend" or similar  words suggesting future outcomes, statements that actions, events or  conditions "may", "would", "could" or "will" be taken or occur in the  future. 

 The forward‐looking information is based on certain key expectations and assumptions  made by Desmarais' management, including expectations and assumptions  concerning Desmarais having sufficient capital to meet its commitments  under the Farm-in Agreement, receipt of all necessary approvals for  completion of the Farm-in Agreement; and the completion of the earning  commitments under the Farm-in Agreement in a timely fashion.  

 Although Desmarais believes that the expectations and assumptions on  which such forward‐looking information are based are reasonable, undue reliance should not  be placed on the forward looking information because Desmarais can give  no assurance that they will prove to be correct. Since forward looking  information addresses future events and conditions, by its very nature  they involve inherent risks and uncertainties. Actual results could  differ materially from those currently anticipated due to a number of  factors and risks. These include, but are not limited to, failure to  obtain the necessary regulatory and other approvals and on the  timelines planned and Desmarais inability to secure financing to fund  its commitments at all, or on terms satisfactory to Desmarais.  Management has included the above summary of assumptions and risks  related to forward‐looking information provided in this press release in order to provide  securityholders with a more complete perspective on Desmarais' future  operations and such information may not be appropriate for other  purposes. 

 Although Desmarais believes that the expectations represented in such  forward‐looking statements are reasonable, there can be no assurance that such  expectations will prove to be correct. The Corporation's actual  results, performance or achievement could differ materially from those  expressed in, or implied by, the forward‐looking information and, accordingly, no assurance can be given that any  of the events anticipated by the forward‐looking information will transpire or occur, or if any of them do so,  what benefits that the Corporation will derive there from. 

 Readers are cautioned that the foregoing lists of factors are not  exhaustive. Additional information on these and other factors that  could affect our operations or financial results are included in  reports on file with applicable securities regulatory authorities and  may be accessed through the SEDAR website (www.sedar.com). 

 These forward‐looking statements are made as of the date of this press release and  Desmarais disclaims any intent or obligation to update publicly any  forward‐looking information, whether as a result of new information, future  events or results or otherwise, other than as required by applicable  securities laws. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

Desmarais Energy Corporation


CONTACT:  Doug Robinson, Interim President and Chief Executive OfficerDesmarais Energy CorporationTel: [phone] / Fax: [phone]E-mail:  [e-mail]: www.desmaraisenergy.com 


    

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