CALGARY, AB–(Marketwired – October 26, 2016) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce that it has closed the previously announced private placement (the “Offering“) with Mackie Research Capital Corporation (the “Agent“). Point Loma has closed the Offering in the amount of $1.7 million in common shares of the Corporation issued on a “flow-through” basis (the “FT Common Shares“) under the Income Tax Act (Canada) (the “Tax Act”) with respect to Canadian Exploration Expense “CEE” at a price of $0.35 per FT Common Share.
The Agent has exercised their “Over-Allotment Option” to increase the size of the Offering to approximately $2.0 million in gross proceeds to Point Loma.
All FT Common Shares issued will be subject to a four month hold period.
Point Loma has increased its production since inception and is now averaging approximately 500 barrels of oil equivalent per day (40% oil & natural gas liquids and 60% natural gas), a 300 percent increase since completing the asset and corporate transactions on June 28, 2016.
Point Loma intends to use the proceeds of the offering and cash on hand as follows:
- To tie-in additional behind pipe oil and natural gas production from a horizontal well in the West Cove field of central Alberta. The well was drilled in 2014.
- To tie-in additional behind pipe oil and natural gas production from a vertical Glauconite Mannville well in the Thorsby area.
- Initiate horizontal drilling operations on Point Loma’s large undeveloped land base of over 140,000 net acres (219 net sections) focused on the captured Mannville play fairway.
- Subject to budget approval, drill additional horizontal development wells in 2017 focused on the Mannville to the Mississippian formations of west central Alberta.
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.