CALGARY, AB–(Marketwired – June 21, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce the second tranche investment with Evenergy Company Limited (“Evenergy“) to acquire 4,630,122 common shares of Point Loma for $2,222,459 representing a purchase price of $0.48 per share (the “Investment“) has now been completed. In total, Evenergy has now invested $4,020,000 in exchange for 8,375,000 common shares of Point Loma.
Highlights
- With the closing of the second tranche, Point Loma now has 42,078,907 common shares outstanding;
- Point Loma will utilize the funds to accelerate drilling and facilities plans previously announced; and
- Evenergy will have the right to participate in future equity issuances of the Corporation to maintain its pro rata interest on the terms set out in the Investment agreement.
With the closing of this Investment agreement Point Loma has attracted another strategic investor that will allow Point Loma to accelerate currently identified opportunities and provides additional capital options to pursue opportunities in the core focus area of west central Alberta. Point Loma has been able to efficiently acquire certain strategic assets for accretive terms in the region and the Evenergy transaction injects capital to further accelerate the Corporation’s drilling program and acquisition and exploitation opportunities through the remainder of 2017.
“Point Loma is excited to add to our capital programs in 2017 with this addition of capital at a key time in our growth cycle,” said Terry Meek, President and CEO of Point Loma.
GMP Securities LP and Mackie Research Capital Corporation have acted as the respective financial and strategic advisors to Point Loma in regards to this investment transaction.
Point Loma is currently producing approximately 700 boe/d (post-closing of the Salt Bush joint venture). The Corporation anticipates the acceleration of its development plan and the increase of production with the deployment of the proceeds through certain identified acquisitions, re-activations, development drilling and new pool drilling opportunities.
Appointment of New Director
Point Loma is very pleased to announce that Jianjun Cui has been appointed to the Corporation’s Board of Directors. Mr. Cui is a founding director of Dayou Energy Ltd., the parent company of Evenergy, which now holds approximately 19.9% of the Corporation’s common shares. Mr. Cui has more than 20 years of senior management experience including Senior Vice President of a Hong Kong listed company, Vice President of Mergers and Acquisitions for Sinochem Petroleum, Country Manager to Colombia and General Manager of Asset Management for Sinochem Petroleum. Mr. Cui holds a PhD in Geophysics and has been a visiting professor to the University of Calgary for one year. It is anticipated that Mr. Cui will join the Reserves and Corporate Governance and Compensation committees of Point Loma.
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
About Evenergy
Evenergy is a long term strategic investor targeting high quality oil and gas assets. Evenergy is a Hong Kong registered company, a subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG distribution and retail companies in China.
A Note Regarding Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including without limitation, statements pertaining to Point Loma’s expectations as to production and future potential production increases, as well as increases in cash flow and the timing thereof; future gas processing rates; Point Loma’s expectations as to future prices of oil and natural gas; the focus of Point Loma’s management team and go-forward strategy.
The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. Although Point Loma believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Point Loma cannot give assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their 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, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the inability of Point Loma to bring additional production on stream or in the anticipated quantities disclosed herein; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on Point Loma’s future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and Point Loma does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Oil and Gas Information
“BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
For further information, please contact:
Terry Meek
President and CEO
Telephone: (403) 705-5051 ext.101
tmeek@pointloma.ca
Kevin Angus
Executive Vice President, Business Development
Telephone: (403) 705-5051 ext. 103
kangus@pointloma.ca
Randall Boyd
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 105
rboyd@pointloma.ca