CALGARY, ALBERTA–(Marketwired – May 19, 2016) – Perisson Petroleum Corporation (“Perisson” or the “Company”) (CSE:POG) and Forent Energy Inc. (“Forent”) (TSX VENTURE:FEN) are pleased to announce the closing of the previously announced acquisition of a certain producing oil and gas assets in the Twining area of Alberta (the “Acquisition“). The Acquisition consists of approximately 200 boe/d, which is comprised of 70% oil and 30% liquids rich gas with associated facilities (the “Assets“).
The Acquisition was made by Forent who acquired the property on behalf of Perisson pursuant to a trust agreement between Forent and Perisson. Forent will act as operator of the Assets until the completion of the amalgamation of Forent and Perisson, as previously announced.
This Acquisition represents a significant addition to the land and production base which Forent currently has in the Twining field, and provides growth opportunity for future development and improved recovery techniques. Perisson and Forent, through the amalgamated company, will continue the execution of our plan to acquire additional assets in Twining as one of our growth areas.
Perisson and its capital partner will continue to fund high-quality acquisitions in Canada and the United States, based on the efforts and recommendations of the Forent management team.
In connection with the Acquisition, Perisson has closed the first tranche of its previously announced debenture financing. Perisson has issued an unsecured debenture in the principal amount of USD$1,000,000. This unsecured debenture matures on the date that is one year following the Closing Date (the “Maturity Date“) and entitles the holder to a monthly interest payment equal to 1.5% of the principal amount of the Debenture, with such interest payment accruing from the Closing Date and being paid on the Maturity Date of the Debenture. Perisson has also issued a convertible secured debenture in the principal amount of $500,000, with outstanding principal and accrued but unpaid interest convertible by the holder into common shares of Perisson at a conversion price of $0.40 per share until the Maturity Date. The Convertible Debenture matures on the date that is one year following the Closing Date if not otherwise converted, is to be secured, as a first mortgage charge, against the Assets to be acquired pursuant to the Acquisition, entitles the holder to a monthly interest payment equal to 1.5% of the principal amount of the Debenture, with such interest payment accruing from the Closing Date and being paid on the Maturity Date of the Debenture and bears a set-up and due diligence fee equal to ten (10%) percent of the principal amount of the Debenture. The convertible secured debenture represents the first tranche closing of the Company’s previously announced $2 million secured convertible debenture financing.
About Perisson Petroleum Corporation
Perisson Petroleum Corporation holds a 100% working interest in 39,927 hectares (almost 100,000 acres) known as the VMM-17 block, a license located in the prolific, stable, oil-producing region of the Middle Magdalena Basin in central Colombia. The Corporation’s objectives are to explore, exploit and produce oil from the relatively shallow reservoirs believed to be within the VMM-17 block.