KELOWNA, BRITISH COLUMBIA–(Marketwired – Feb. 17, 2017) – Pulse Oil Corp. (“Pulse” or the “Corporation”) (TSX VENTURE:PUL.H) announces the TSX Venture Exchange (the “Exchange”) has conditionally approved Pulse’s proposed Qualifying Transaction as previously described in news releases dated October 13, 2016, October 18, 2016 and November 30, 2016. Pulse previously executed a definitive asset purchase agreement with Hydrate Resources Corp. (“Hydrate”) on November 8, 2016 and the purchase price is payable as to $3,763,429 by issuance of 25,089,530 common shares of Pulse.
In addition, Hydrate conducted a private placement to raise an additional $425,000 by the issuance of 2,833,334 Subscription Receipts at a price of $0.15 per Subscription Receipt entitling the holder of the Subscription Receipt to automatically receive, without payment of additional consideration, one common share of Hydrate upon the Exchange giving conditional acceptance to the acquisition by Pulse of the issued and outstanding shares of Hydrate. The private placement of Subscription Receipts closed on December 22, 2016 and as a result, at closing of the Qualifying Transaction, Pulse will issue to the holders of securities of Hydrate a total of 27,781,197 Pulse Shares, inclusive of the $425,000 private placement that closed on December 22, 2016. The Proposed Acquisition is intended to constitute the Qualifying Transaction of Pulse in accordance with Policy 2.4 of the Exchange, subject to Exchange approval.
Pulse’s filing statement dated as of February 15, 2017 (the “Filing Statement”), as approved by the Exchange, has been filed on SEDAR and may be viewed at www.sedar.com. The Filing Statement describes Pulse’s proposed Qualifying Transaction, as required by Exchange Policy 2.4. Pulse anticipates completing the Qualifying Transaction on or before February 24, 2017.
On closing of the Qualifying Transaction, Pulse is expected to commence trading on the Exchange as a Tier 2 Oil and Gas issuer under the trading symbol “PUL”, at which time Pulse will no longer be considered a capital pool company.
Reserve and Financial Disclosure
Bigoray Asset Description and Reserves Disclosure. All BOE’s stated below are gross volume.
|1.||As evaluated by McDaniel & Associates Consultants Limited, an independent qualified reserves evaluator (“QRE”) as defined in NI 51-101, as at October 1, 2016 and based on HRC owning a 50% interest in the Bigoray area currently owned by Crimson:|
|a)||458,800 BOE of Proved Reserves with an estimated net present value before tax (“BT”) and discounted at 15% of $2,938,300 and; an estimated net present value discounted at 10% of $3,982,000.|
|b)||689,800 BOE of Proved and Probable Reserves with an estimated net present value BT and discounted at 10% of $5,702,100.|
|Company Proved and Probable Reserves and Value by|
|Proved Reserve Category||Oil (1)||MMCF||NGL||Total BOE||PV15% BT||PV10%BT|
|Probable Reserve||Oil (2)||MMCF||NGL||Total BOE||PV15% BT||PV10%BT|
|Proved & Probable||Oil (3)||MMCF||NGL||Total BOE||PV15% BT||PV10%BT|
|Total Proved & Probable||432,100||1,152.0||65,800||689,800||$||4,095,900||$||5,702,100|
|(1)||Proved Reserves of 458,800 BOE consist of 272,000 barrels of oil made up of 259,000 barrels of light and medium oil and 13,000 barrels of heavy oil. Additionally proved reserves consist of 138,500 BOE of conventional natural gas and 48,300 barrels of NGLs as classified in the Canadian Oil And Gas Evaluation Handbook (“COGEH”).|
|(2)||Probable Reserves of 231,100 BOE consist of 160,100 barrels of oil made up of 61,000 barrels of light and medium oil and 99,100 barrels of heavy oil. Additionally proved reserves consist of 53,500 BOE of conventional natural gas and 17,500 barrels of NGLs as classified in the Canadian Oil And Gas Evaluation Handbook (“COGEH”).|
|(3)||Proved and Probable Reserves of 689,800 BOE consist of 432,100 barrels of oil made up of 320,000 barrels of light and medium oil and 112,100 barrels of heavy oil. Additionally proved reserves consist of 191,900 BOE of conventional natural gas and 65,800 barrels of NGLs as classified in the Canadian Oil And Gas Evaluation Handbook (“COGEH”).|