CALGARY, ALBERTA–(Marketwired – Feb. 10, 2017) – Petrocapita Income Trust (CSE:PCE.UN)(CSE:PCE.UN.CN) (“Petrocapita” or the “Trust“) announces that it has closed a Purchase and Sale Agreement (“PSA“) on February 9, 2017 for all of the Canadian oil and gas properties and assets of Maha Energy Inc. (‘Maha“) for $1,650,000 (plus or minus any adjustments pursuant to the PSA post-closing). The effective date of the transaction is January 1, 2017. The assets were acquired by issuance to Maha of cash due within the year and a convertible debenture secured by the assets acquired in the total amount of $1,650,000.00. The term of the debenture is 7 years, carries an interest rate of 6%, is amortized over 7 years beginning on March 15, 2017, and is convertible into common trust units of Petrocapita on or after December 31, 2017 at the volume weighted average trading price of such unit on the principal market for such units for each of the last 20 trading days prior to the date of conversion set by the exercise of the option to convert.
About the Transaction
The acquisition of the Maha assets results in the Trust’s increasing its working interest in 20 heavy oil wells, 2 produced water disposal wells, and a produced water disposal facility with associated produced water disposal flowlines to 100% from approximately 58%.
Details related to the Trust’s reserves and facilities valuations and secured convertible debenture closings to date related to the acquisition and development capital have been filed with the Canadian Securities Exchange (www.theCSE.com).
Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiary, Petrocapita Oil and Gas LP. Petrocapita owns or has interest in 435 gross (416.3 net) oil wells, 89 gross (20 net) gas wells, 19 produced water disposal facilities, 3 custom oil processing facilities, 3 natural gas compressor stations, 72.75 km in pipelines, oilwell service rigs, fluid haul tractors and trailers, motor graders, and wellsite processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil and gas markets.