| Source: Point Loma Resources Ltd
CALGARY, Alberta, March 01, 2018 (GLOBE NEWSWIRE) — Point Loma Resources Ltd. (TSX VENTURE:PLX) (the “Corporation” or “Point Loma”) is pleased to announce that it has entered into a definitive agreement to acquire oil and gas assets from a private oil and gas company involved in a receivership process, effective date November 1, 2017 (the “Acquisition”). The purchase price of the Acquisition is subject to court approval and closing is anticipated to be in March, 2018.
Highlights (figures gross unless stated otherwise):
- Point Loma (70 percent working interest) and Salt Bush Energy Ltd. (“Salt Bush”) have acquired assets concentrated in the west central area of Alberta contiguous to Point Loma’s existing area of focus.
- Production of approximately 450 boe/d, comprised of 35 percent oil and ngl’s.
- Approximately 29,000 acres (18,000 net) land in Point Loma’s core area of west central Alberta with an average working interest of 62 percent.
- The acquired properties have identified upside for future exploitation and exploration.
- The property acquired had 2017 estimated net operating income of $1.3 million.
- The Acquisition has a liability management ratio (“LMR”) of 3.4, comprised of deemed assets of $11.5 million and deemed liabilities of $3.4 million.
The Acquisition is anticipated to close in March 2018 subject to court and regulatory approvals. The properties include areas with proved undeveloped locations booked in addition to the base production. Point Loma plans to update the Acquisition reserves to December 31, 2017 post closing.
“This Acquisition adds to Point Loma’s production and further expands growth of our core area. Multi-zone opportunities in the Acquisition include Mannville, Cardium and Duvernay.” said Terry Meek, President and CEO of Point Loma. “Value acquisitions such as this continue to solidify a strong base of operations and expand the opportunity base in the Corporation.”
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional oil and gas reservoirs in west central Alberta. The Company controls over 150,000 net acres (230 net sections) and has a deep inventory of opportunities in the Mannville, Nordegg, Banff and Duvernay Shale formations. 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, 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.
For further information, please contact:
Terry Meek
President and CEO
Telephone: (403) 705-5051 ext. 444
tmeek@pointloma.ca
Kevin Angus
Vice President, New Ventures
Telephone: (403) 705-5051 ext. 440
kangus@pointloma.ca
Randall Boyd
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 443
rboyd@pointloma.ca
Share This: