VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 9, 2017) – Pulse Oil Corp. (“Pulse” or the “Company”) (TSX VENTURE:PUL) announces that Pulse and Crimson Energy Ltd (“Crimson”) have agreed to extend the terms of the agreement (the “Agreement”) between Pulse’s subsidiary and Crimson to insure the committed work programme takes optimal advantage of the Company’s funding plans, and maximizes the value of the Bigoray Assets, located in Alberta.
Pursuant to the Agreement, Pulse’s subsidiary acquired a 50% interest in the Bigoray Assets and included an option to acquire Crimson’s entire interest in the Assets, for a price of $4.25 million. In addition to the initial payment of $750,000 to Crimson, Pulse’s subsidiary committed to fund the first $3 million in capital costs allocated mainly to low risk well re-activations within the Bigoray project area to enhance production and cashflows from the area.
The material amendments to the terms of the Agreement are detailed in the table below:
|Original Terms (Prior to Going Public via the “Pulse Oil” TSX-V
|a.||Capital cost commitment for
50% interest in Bigoray Assets
|$3 million by March 31, 2017||$250,000 by March 20, 2017|
|$1,000,000 by June 30, 2017|
|$1,750,000 by September 29, 2017|
|b.||Option to purchase remaining
50% of the Bigoray Assets
|Pay an additional $4.25 million by April 30, 2017||Pay $4.25 million by October 20, 2017 (post completion of the planned well
Garth Johnson, CEO of Pulse Oil Corp. stated, “As we begin to grow Pulse through a combination of smart acquisitions and technically supported capital investments, we appreciate the opportunity to work with Crimson to amend the terms of our agreement. Having recently been accepted onto the TSX Venture Exchange (March 7, 2017), we felt it would be beneficial to adjust the timelines to fully plan and fund the development of the Bigoray assets. We are excited to get to work and we look forward to growth of production and reserves via well re-activations, and proven enhanced oil recovery processes. Our initial low-risk capital program is forecast to generate significant value at Bigoray. We appreciate Crimson working with us on the revised terms and we look forward to executing on the planned well reactivation program in the field.”
More data and videos related to the Bigoray Assets are available at Pulse’s website at www.pulseoilcorp.com.
About Pulse Oil Corp.
Pulse is a Canadian company incorporated under the Business Corporation Act of Alberta and has plans to become a leading oil and gas company. Pulse will focus on acquiring affordable, small to medium sized proven oil and gas assets with significant upside while achieving further growth through low-risk, technically diligent drilling utilizing proven horizontal drilling technology and enhanced oil recovery techniques to grow reserves and shareholder value.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.”
This press release contains forward-looking information. More particularly, this press release contains statements concerning the date on which the Company’s shares will resume trading, and the Company’s business plans. Any information about Pulse contained in the press release has not been independently verified by the Company. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations 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.
This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any “U.S Person” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “1933 Act”)) of any equity or other securities of Pulse Oil Corp. The securities of Pulse Oil Corp. have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.
Pulse Oil Corp.
President and COO