CALGARY, ALBERTA–(Marketwired – Nov. 29, 2016) – Blacksteel Energy Inc. (TSX VENTURE:BEY) (“Blacksteel“) is pleased to announce that it has closed the acquisition (the “Acquisition“) of a 30% working interest (the “Blacksteel Interest“) in certain oil and gas assets around Girouxville in Northwest Alberta (the “Assets“).
Blacksteel acquired the Blacksteel Interest (the “Acquisition“) from Drakkar Energy Ltd. (“Drakkar“), for a purchase price of $600,000, concurrent with Drakkar’s purchase of the Assets from the appointed receiver-manager of the owner of the Assets. The Acquisition closed on November 25, 2016. In connection with the Acquisition, Blacksteel also provided a $400,000 loan (the “Loan“) to Drakkar. The Loan matures on May 25, 2017, accrues interest at a rate of 12% per annum and is secured by a 20% working interest in the Assets. Under the terms of the Loan, Blacksteel has the option, 60 days from the closing of the Acquisition, to convert any or all of the Loan into additional working interests in the Assets, at a cost of $100,000 for each additional 5% working interest.
The light oil Assets are comprised of 18 sections of contiguous land on which six horizontal wells have been drilled. Five of the wells had previously been on production and a sixth was completed but has not been equipped. All wells have been shut-in since the Vendor was placed in receivership in late January 2016. The operator plans to place up to four of the wells on production post-closing.
The TSX Venture Exchange has in no way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this press release.
Blacksteel Energy Inc.
Blacksteel is a junior oil and gas company involved in the exploration, exploitation, development and production of petroleum and natural gas resources.