CALGARY, AB–(Marketwired – September 26, 2016) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce that it has entered into an agreement with Mackie Research Capital Corporation (the “Agent“), whereby the Agent has agreed to offer, on a reasonable commercial efforts private placement basis (the “Offering“), up to $1.7 million in common shares of the Company to be 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. This price represents an at market offering price for the FT Common Shares with no premium.
Management and directors of the Corporation will also be participating in the offering.
The Agent shall have the option (the “Over-Allotment Option“) to increase the size of the Offering up to $3.0 million by giving written notice of the exercise of the Over-Allotment Option, or a part thereof, to the Company at any time up to 48 hours prior to Closing. The Agent shall be under no obligation whatsoever to exercise the Over-Allotment Option, in whole or in part.
All FT Common Shares issued will be subject to a four month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals and approval of the TSX Venture Exchange.
The closing of the Offering is scheduled to occur in later October or early November 2016 (the “Closing”).
Point Loma is also pleased to announce that the tie-in of the Paddle River area assets has been completed and production is now averaging approximately 500 barrels of oil equivalent per day (40% oil & ngls 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:
- Immediately tie-in additional behind pipe oil and natural gas production from a well in the West Cove field. The well was drilled in 2014 and had tested daily flowrates of approximately 325 barrels of oil equivalent per day.
- Drill one horizontal Mannville well on Point Loma’s large undeveloped land base in 2016.
- Subject to budget approval and funding, drill additional horizontal development wells in 2017 focused on the Mannville to the Mississippian formations of west central Alberta.
“Point Loma has completed the initial phase and a significant step in our growth plan,” said Terry Meek, President and CEO of Point Loma. “We are now moving into the second phase, focused on the connection of additional existing behind pipe production volumes which is expected to add another step change in production and cash flow in Q4 2016. To provide the next phase of growth, we are also excited to initiate horizontal drilling operations focused on an evolving Mannville oil and gas play which is present throughout Point Loma’s acreage. These field activities are expected to boost production and provide additional funds for future development drilling.”
This press release shall not constitute an offer of securities for sale in the United States. The securities referred to in this press release have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration.
About Point Loma
Point Loma is a public oil and gas exploration and development company focusing on 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.