CALGARY, AB–(Marketwired – December 22, 2016) – 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 all of the issued and outstanding shares of a private oil and gas company with producing assets in central Alberta (the “Acquisition“) for the consideration of 1,250,000 common shares of Point Loma. The Acquisition is anticipated to close in January 2017.
- Production of approximately 40 boe/d, comprised of 50% oil and ngls.
- Purchase price of Cdn. $500,000 paid with the issuance of 1,250,000 common shares of Point Loma.
- The acquired properties have identified upside for future exploitation.
“With this acquisition Point Loma has again demonstrated the ability to find quality assets in line with our previous deal metrics,” said Terry Meek, President and CEO of Point Loma. “Transactions of this nature will continue to build shareholder value as Point Loma develops the Mannville trend in west central Alberta.”
In a separate transaction, Point Loma has cancelled the previous senior secured convertible debenture maturing on June 28, 2021 (the “Convertible Debenture“) issued to Madalena Energy Ltd. (TSX VENTURE: MVN) (“Madalena“) in the principal amount of Cdn. $3,000,000 and has issued two convertible debentures in the amount of Cdn. $1,250,000 (the “New Convertible Debentures“), the New Convertible Debentures having substantially the same terms as the previous Convertible Debenture. The cancellation of the Convertible Debenture and issuance of the New Convertible Debentures is a result of the sale by Madalena to two independent parties. As a result of this sale, the principal amount owing by the Corporation under the New Convertible Debentures has been reduced by Cdn. $500,000.
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.