CALGARY, ALBERTA–(Marketwired – Feb. 14, 2017) – Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX:PRQ) is pleased to announce that it has entered into an agreement with a private company to acquire certain oil and natural gas interests in the Ferrier area, subject to customary closing conditions (the “Acquisition”).
Pursuant to the Acquisition, Petrus will acquire approximately 40 boe/d of production as well as a 100% working interest in a drilled and completed Cardium horizontal well (“Non-Producing Well”) which is expected to be tied in later in 2017 and production rates are expected to be consistent with wells recently drilled by Petrus in the Ferrier area. In addition, Petrus will acquire a 100% working interest in approximately 3,360 net acres (5.25 net sections) of undeveloped Cardium land in its Ferrier core area. Petrus anticipates the undeveloped land will add 21 gross (21 net) Cardium drilling locations. Closing of the Acquisition is subject to the satisfaction of customary closing conditions and is expected to occur on or before February 28, 2017, with an effective date of January 1, 2017. The purchase price for the Acquisition is expected to be financed by way of a non-brokered private placement and through availability under its credit facilities.
Petrus is also pleased to announce that its Board of Directors has approved a non-brokered private placement of approximately 1,585,000 common shares of Petrus (“Common Shares”) at an issue price of $2.53 per Common Share for aggregate gross proceeds of approximately $4,010,050 (the “Private Placement”). It is anticipated that the Common Shares will be subscribed for by a director of the Company.
The Private Placement is expected to close on or before the closing of the Acquisition, with the proceeds to be used to pay a portion of the purchase price for the Acquisition. Closing is subject to receipt of all requisite approvals, including the approval of the Toronto Stock Exchange. The Common Shares will be subject to a statutory hold period of four months plus one day from the distribution date.
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.